Tag: Penalty Clauses in a Contract
Understanding Liquidated Damages and Penalty Clauses in a Contract
Business deals made with a firm handshake and the other party’s word are long gone. Today, savvy businesses prefer to protect themselves with ironclad contracts, but the fine print is important. Two clauses may apply in the event of a breach of contract – liquidated damages vs. penalty clauses – and there are distinct differences between them. What is the difference between a liquidated damages clause and