Liquidated Damages In Agreement

It is therefore natural to provide for a lump sum damages clause to protect an employer against foreseeable damages. Courts are reluctant to increase a lump sum damages clause in the absence of exceptional circumstances. As a result, it is likely that an employer will not be able to claim lump sum damages that go beyond other rights, such as loss of profits. Clauses for the replacement of lump sum damages are usually written as a formula, for example: the flat-rate replacement clauses usually apply to a certain type of infringement, for example.B. for construction contracts, the infringement is usually a delay in completion. The evolution of the case-law is much more instructive: when a right to lump sum damages is collected before a court, the Tribunal has a margin of appreciation in deciding whether to maintain, amend or revoke the clause. Therefore, unlike common law jurisdictions, the right to lump sum damages is not easy. . . .