Liquidating damages dating vs living together

13 Dec

Although not required for enforceability that a liquidated damages clause explain in its own language what it is that makes the damages so difficult to calculate, it is required that the damages actually be difficult to calculate at the time the parties execute the lease.

Destabilizing them, particularly with regard to an extremely widespread practice in the industry, does little to advance well attested policies.

Those in the building and construction industry are likely to come across the term “liquidated damages” in their construction contracts.

This article will explain liquidated damages in construction contracts and provide an example of its application in a recent case Spiers Earthworks Pty Ltd v Landtec Projects Corporation Pty Ltd (No 2) [2012] WASCA 53 (‘Spiers’).

The principal can recover their loss without having to prove their actual loss, and the contractor will have certainty that the contract will cap their liability for damages at a certain amount.

The parties will usually agree to the liquidated damages clause before signing a contract.