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Editing Contracts/Liquidated damages
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===Example=== | ===Example=== | ||
For example, suppose Neal Townsend agrees to lease a store-front to Richard Smith, from which Richard intends to sell | For example, suppose Neal Townsend agrees to lease a store-front to Richard Smith, from which Richard intends to sell jewelry. If Townsend breaches the contract by refusing to lease the store-front at the appointed time, it will be difficult to determine what profits Smith will have lost because the success of newly created small businesses is highly uncertain. This, therefore, would be an appropriate circumstance for Smith to insist upon a liquidated damages clause in case Townsend fails to perform. | ||
In the case of construction contracts, courts have occasionally refused to enforce liquidated damages provisions, choosing to follow the [[doctrine of concurrent delay]] when both parties have contributed to the overall delay of the project. | In the case of construction contracts, courts have occasionally refused to enforce liquidated damages provisions, choosing to follow the [[doctrine of concurrent delay]] when both parties have contributed to the overall delay of the project. |