Timeline for What is it called when a pre-defined penalty is specified in a contract?
Current License: CC BY-SA 4.0
9 events
| when toggle format | what | by | license | comment | |
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| Mar 15, 2019 at 22:21 | comment | added | Acccumulation | @DaleM Seems like that just makes the cite even less relevant. | |
| Mar 15, 2019 at 21:17 | comment | added | Dale M♦ | @Acccumulation if it is ”ordinary and necessary expenses” it’s not a penalty - it's damages. | |
| Mar 15, 2019 at 19:37 | comment | added | Acccumulation | @ohwilleke That decision says "The result in this case turns on whether the statutory provision limiting a school district's recovery of damages to the "ordinary and necessary expenses" it incurs in finding a replacement for a teacher who resigns with insufficient notice allows recovery of monies paid to salaried employees when the employees would have been paid the same amount regardless of the teacher's late resignation." It looks to me that there was a limitation specific to that case of "ordinary and necessary expenses" , not a general prohibition against penalties. | |
| Mar 15, 2019 at 19:29 | comment | added | ohwilleke | @Acccumulation See, e.g., Klinger v. Adams County Sch. Dist. No. 50, 130 P.3d 1027, 1034 (Colo. 2006) citing Restatement (Second) of Contracts § 356. | |
| Mar 15, 2019 at 18:30 | comment | added | Acccumulation | Any citations for that? | |
| Mar 15, 2019 at 18:08 | comment | added | ohwilleke | @Trish A "penalty" is a term of art in the law that means "not a valid liquidated damages clause." What you are calling a "100k delay penalty" would be called in legal language a liquidated damages clause and not a penalty and a lawyer would be a fool to call it a penalty in contract language. | |
| Mar 15, 2019 at 12:49 | comment | added | Trish | penalty can be unlawful but doesn't need to be. if the contract is about a 25-million ship, a 100k delay penalty is peanuts and can be very lawful | |
| Mar 15, 2019 at 7:40 | history | edited | Dale M♦ | CC BY-SA 4.0 |
added 14 characters in body
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| Mar 15, 2019 at 5:28 | history | answered | Dale M♦ | CC BY-SA 4.0 |