Webinars by Practice Area
Recorded on: 05/12/2019
Liquidated damages clauses are commonly found in commercial contracts but their enforceability can often be questioned. Since the landmark decision of the Supreme Court in Cavendish v El-Makdessi and Beavis v Parkingeye in 2015, the courts have now sought to apply these principles in a series of cases. This webinar sets out an overview of the key issues to be borne in mind when drafting such a clause. Topics will include:
- what does ‘liquidated damages’ mean?
- how do the courts distinguish between a liquidated damages clause and a penalty clause?
- what is a ‘legitimate interest’?
- how do I ensure that the amount inserted is not ‘extravagant, exhorbitant or unconscionable’?
- will a default rate of interest be treated as a penalty?
- to what extent will a liquidated damages clause apply to work that has not been completed?
- will liquidated damages always be subject to limitation of liability provisions?