Wisconsin Clauses Relating to Dividends, Distributions

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US-P0608-3AM
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This sample form, containing Clauses Relating to Dividends, Distributions document, is usable for corporate/business matters. The language is easily adaptable to fit your circumstances. You must confirm compliance with applicable law in your state. Available in Word format.
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FAQ

Generally, liquidated damages are meant to be compensatory rather than punitive. This is why the amount of compensation that a party is required to pay in a liquidated damages clause should be a genuine estimation of the loss that would result from a breach of contract.

A liquidated damages clause is a means of ensuring that you are compensated if the party you hired fails to do the job. It should include a clause that sets out the specific amount of damages you are to receive if a specific type of breach occurs.

The main difference between a penalty clause and liquidated damages is that the former is intended as a punishment and the latter simply attempts to make amends or rectify a problem.

Liquidated Damages: These types of damages are awarded when there is a provision in a contract which states the amount of damages that shall be awarded in the event of a breach. Liquidated damages cannot be used as punishment to a party or to harm the party for the breach.

Where property is not destroyed, one measure of damages is the difference between the value before and the value after; a second measure is what it would reasonably cost to put the property in such condition as it was before the ? not the actual cost of repair. Chapleau v. Manhattan Oil Co., 178 Wis. 545, 190 N.W.

(1) An action for breach of any contract for sale must be commenced within 6 years after the cause of action has accrued. By the original agreement the parties, if they are merchants, may reduce the period of limitation to not less than one year. The period of limitation may not otherwise be varied by agreement.

To be enforceable in Wisconsin, liquidated damages must be reasonable. That is, they must reflect a rational estimate of the owner's likely damages caused by delay. Liquidated damages that are far greater than the owner's actual damages will be deemed unreasonable and unenforceable.

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Wisconsin Clauses Relating to Dividends, Distributions