Liquidating damages on form hud 2442
Usually they apply to some specific type of breach of the contract, not any breach of any promise anywhere in the contract.In construction contracts, you’ll most often see liquidated damages apply when the contractor breaches the contract by not finishing the work on time.Thus, in contract when these damages are awarded it is known as liquidated damages.Liquidated Damages means that it shall be taken as the sum which the parties have by the contract assessed as damages to be paid whatever may be the actual damage.If the prime contractor is five days late in substantially completing their work, they owe the owner ,000.The owner usually deducts the ,000 from a payment to the contractor. What I do see often though are disputes over liquidated damages.Liquidated damages are a pretty frequent feature in construction contracts. Liquidated damages are an amount of money that contracting parties agree on as the amount of damages one of them can recover if the party breaches the contract.
This report is aimed to highlight provisions regarding liquidated damages in case of the breach of the contract and to bring about a comparative study between India and England regarding it.
I can’t recall ever seeing a contractor actually pay liquidated damages to an owner. They usually center around two issues: (1) whether a contract’s liquidated damages clause is enforceable and (2) how much in liquidated damages does one party owe the other.