Sample Liquidated Damages Clause For Late Delivery
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FAQ
Sample liquidated damages clause: In the event of delay in [type of project] completion, the [performing party] shall pay liquidated damages to [the owner] in the amount of [dollar amount per day/week, etc.] [or] ["X" percent of the total contract price per day/week, etc.].
An example of liquidated damages is when a bank or person offers money in the form of a loan and the stipulated time of repayment ends before the completion of payment. The defaulting party must compensate for this damage as agreed in the contract.
(c) The Liquidated Damages shall be paid to each Holder in cash within ten (10)Business Days following the last day of 30-day period that the Holders are entitled to such Liquidated Damages. Any payments made pursuant to this Section2. 02 shall constitute the Holders' exclusive remedy for such events.
Construction contracts often include a clause that identifies a stipulated or ?liquidated? damage amount for unexcused delay. These clauses assess a fixed sum for each day of delay, thereby relieving the owner from proving its actual damages caused by delay.
