About this document
Contract Insights by gandakiuniversity10 is a document available to read on EtoBox.
The document explains the differences between liquidated damages clauses and penalty clauses in contract law. Liquidated damages are enforceable when they provide a reasonable estimate of actual damages, while penalty clauses, which impose excessive damages to punish the breaching party, are typically unenforceable. Key factors for enforceability include the difficulty of estimating actual damages and ensuring the stipulated amount is a reasonable forecast of likely losses.
- Author
- gandakiuniversity10
- Language
- EN