Liquidated damages

from Wikipedia, the free encyclopedia

As liquidated damages ( English liquidated damages ) in the Anglo-American and international law, a will lump-sum compensation referred.

Such is in most contracts in international plant construction instead of a penalty ( english penalty ) agreed, because in many countries under the principles of common law agreements are prohibited by contractual penalties. With the agreement of liquidated damages , the customer is not obliged to substantiate the amount of damage because an appropriate estimate of the damage has already been specified in the contract itself.

The lump-sum compensation must be calculated in such a way that it accordingly represents an appropriate compensation for the expected damage and thus does not have the character of a penalty.

literature

  • Walter Gregorc and K.-L. Weiner: Claim Management; A guide for project managers and project teams. Publicis Publishing, Erlangen, ISBN 978-3-89578-335-7