Contratos y EjecuciónPregunta 825 de 1605
A liquidated damages clause in a construction contract is best described as:
a.A penalty designed to punish the contractor
b.A pre-agreed reasonable estimate of damages payable if a specified breach (often late completion) occurs
c.A clause that liquidates (sells off) the contractor's assets
d.A clause forbidding any damages at all
Explicación
A liquidated damages clause fixes, in advance, a reasonable estimate of the damages one party will owe if a specified breach occurs, most commonly a set dollar amount per day of late completion. It is enforceable when actual damages would be difficult to calculate and the amount is a reasonable forecast, not a penalty. Courts refuse to enforce clauses that are actually penalties, and the clause is unrelated to liquidating assets or barring damages.
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Preguntas relacionadas de este tema
- A unit-price contract is most appropriate when:
- In a time-and-materials (T&M) contract, the contractor is compensated based on:
- Which contract type places the greatest risk of cost overruns on the contractor rather than the owner?
- For a liquidated damages clause to be enforceable rather than struck down as a penalty, courts generally require that:
- A contract states, 'Liquidated damages of $500 per day shall apply for each day completion is late beyond the substantial completion date.' If the contractor finishes 10 days late, the owner's presumptive recovery under a valid clause is:
- When a contract states that 'time is of the essence,' it means:
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Revisado por Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verificar)