Liquidated damage - concretizing losses that are difficult to estimate

Updated: Mar 30

Liquidated damage clauses are typically used in a contractual context to recover losses that are hard or difficult to make a clear estimation of. Therefore, liquidated damages will specify a pre-determined amount of money owed if a certain provision is breached within the contract.


Liquidated damages are one of the most common clauses seen in manufacturing and supplier contracts however, liquidated damage clauses will operate differently depending on the context.


Striking the balance between a penalty and a reasonable fee can be difficult, but we have you covered. Read more about Liquidated damage here.



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Please note that this document is not legal advice. Legly, and its representatives, are not responsible for the content herein or the suitability for your company’s business. We recommend you use this in conjunction with legal advice and not as a substitute.


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