Liquidated Damages is not an Exhaustive Compensation for the Employer

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TABLE OF CONTENTS

CHAPTER 01: INTRODUCTION1

Background of the Study1

Research Aim2

Research Question2

CHAPTER 02: LITERATURE REVIEW3

Introduction3

Historical Development of Liquidated Damages3

Roman Historical Development3

United States Development4

Liquidated Damages under English law5

Liquidated Damages Provision not an Exhaustive Compensation6

Challenging the Liquidated Damages8

Legal Distinction between a Liquidated Damages Clause and a Penalty Provision9

Liquidated Damages Clause10

Authoritative Laws on Liquidated Damages11

Rules of Law for Determining a Liquidated Damages Clause13

CHAPTER 03: RESEARCH METHODOLOGY15

Introduction15

Overview of the Secondary Research Method15

END NOTES16

CHAPTER 01: INTRODUCTION

Background of the Study

The provisions for liquidated damages is considered to be a requirement of a contract in which a fixed amount which is paid as the damages for the breach of a contract. Liquidated damages serve the purpose that the damages are payable by the breaker of the contract (for example, delay by the contractor) are partial and the party who is innocent (for example, an employer who obtains the completion later) is not required to prove the losses in a strict manner. Commercially, it is of utmost importance that the provision of liquidated damages provides certainty for both the parties by enables them to price and assess the risks that are associated to the delay.

The provisions for liquidated damages can be a specified amount of money or it can be an amount that can be ascertained by using a formula. This fixed amount can be applied to the event of either one or more than one of the different kinds of breach and it covers either one or more than one various kinds of damages. There are a number of different provisions for the liquidated damages in a single contract.

The provisions for liquidated damages are used as a widespread in the industry of construction. The employers who are carrying out their business operations in the industry domestically are usually familiar with the legal principles that are applied to the provisions, for example, the fact that exists significant differences between the treatments that are provided for the liquidated damages under English Law.

Research Aim

This research study will aim to explore that whether liquidated damages is or is not an exhaustive compensation for the employer.

Research Question

This research has answered the below mentioned question.

“What are the reasons due to which liquidated damages are not an exhaustive compensation for the employer?”

CHAPTER 02: LITERATURE REVIEW

Introduction

This chapter of the dissertation provides the relevant literature on the topic of liquidated damages is not an exhaustive compensation for the employer. This chapter discusses the authoritative laws and the case laws that are related to the liquidated damages, exhaustive compensations for the employers. The literature has been extracted from the electronic libraries, online journals, articles etc.

Historical Development of Liquidated Damages

Current non-statutory contract law in the United States is an outgrowth of an intricate evolutionary process that is a Greek, Roman, and Anglo-Saxon amalgam of legal philosophy. Within this labyrinth of classical legal thought is the genesis of the penalty and liquidated damages doctrines. The section to follow will briefly survey the most salient aspects of this earlier ...