In a construction contract, there is a $1000 per day estimate of damages for each day that the contract runs over the completion date. The contractor is 30 days late when the job is completed, resulting in a prospective damage award of $30,000. What is this type of clause, and when will it be enforced?
This type of clause is known as a liquidated damages clause. Generally this type of clause will be enforced if, at the time of creating the contract, it was very difficult to estimate actual damages, and the liquidated amount is reasonable. In this case, if the total construction contract involved millions of dollars, the estimate of damages may reasonably amount to a $1000 per day. If the construction project is a small one, the court may see this amount as too much and not enforce the clause.
You might also like to view...
To meet the needs of U.S. Postal Service equipment, envelopes used for bulk mailings
A) are never made of colored paper. B) are addressed in capital letters. C) include all mailing instructions below the address area. D) change based on envelope size.
The major difference between the Internet and the World Wide Web is based on _____
a. the faster speed of the Internet b. the regulated nature of the Internet c. the audio-visual capability of the World Wide Web d. the free nature of the Internet
Sharon, an employee at Coral Triangle Inc, wants to inform the company's senior management that her high revenue-generating project is progressing well and may be completed before the scheduled date. Which of the following practices should she avoid when addressing the senior management through e-mail? A. She should avoid using a more formal tone. B. She should avoid using contractions like
"you'll" and "here's." C. She should avoid using the direct approach to inform senior management about the goodnews. D. She should avoid using words like "efficient," "progress," and "guarantee" in the e-mail.
Which of the following is a stage of the Nolan and Gibson growth stage model?
A) Early successes B) Contagion C) Integration D) All of the above