Pittsburgh Pennsylvania Liquidated Damage Clause in Employment Contract Addressing Breach by Employee

State:
Multi-State
City:
Pittsburgh
Control #:
US-01153BG
Format:
Word; 
Rich Text
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Description

An employment contract may state the amount of liquidated damages to be paid if the contract is breached. Upon a party's breach, the other party will recover this amount of damages whether actual damages are more or less than the liquidated amount.


If the agreed-upon liquidated damage amount is unreasonable, the Court will hold the liquidated damage clause to be void as a penalty. If the Court declares the clause to be void, the employer would have to prove the actual damages.

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FAQ

A liquidated damages clause is enforceable when it reflects a fair estimate of damages likely to occur from a breach. Courts in Pennsylvania favor clauses that are reasonable and not punitive in nature. For employers and employees in Pittsburgh, understanding these conditions is essential to ensure that the Pittsburgh Pennsylvania Liquidated Damage Clause in Employment Contract Addressing Breach by Employee can withstand judicial scrutiny.

Determining the liquidated damages amount often involves assessing the potential financial impact of a breach at the time the contract is formed. The amount should be realistic and not punitive, aiming to cover actual damages if a breach occurs. Given the complexity of contract law, consulting a legal professional or using uslegalforms can provide you with accurate insights related to the Pittsburgh Pennsylvania Liquidated Damage Clause in Employment Contract Addressing Breach by Employee.

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Pittsburgh Pennsylvania Liquidated Damage Clause in Employment Contract Addressing Breach by Employee