What does no liquidated damages mean?
Definition. Liquidated Damages are a variety of actual damages. Most often, the term “liquidated damages” appears in a contract, and often is the title for a whole clause or section. Parties to a contract use liquidated damages where actual damages, though real, are difficult or impossible to prove.
What does liquidated damages mean in real estate?
A Liquidated Damages provision allows for the payment of specified damages should the buyer breach the contract – a way to stipulate damages on the front-end of the transaction to save the parties from spending time and money fighting over damages at the back-end of the transaction.
What is no harm no foul mean?
(also no harm, no foul) informal. used for saying that no damage has been done by someone’s mistake : It was a joke, the joke went wrong, he apologized, so no harm no foul.
What if there is no liquidated damages clause?
However, when there is no liquidated damages clause the general law of damages applies. This is intended to restore the ‘injured’ party to the position they would have been in had the breach of contract not occurred.
What are the benefits of liquidated damages?
The main benefit of including a liquidated damages clause is that it can allow the injured party to get compensation of the specified amount once the breach has occurred. This can have cost advantages as parties to not need to go through the process of bringing a claim under the common law for damages.
Are liquidated damages an exclusive remedy?
In the event of a breach that triggers the liquidated damages provision, the liquidated damages are the exclusive remedy of the non-breaching party (i.e., make sure that if your contract has a cumulative remedies provision, it does not apply to breaches that trigger the liquidated damages provision and associated …
How do you respond to no harm no foul?
Today, every slang dictionary wrongly considers “No harm, no foul” a valid response to an apology such as “I’m sorry I didn’t give you a separate salad fork” or “I’m sorry I called you Greg instead of Gregory.” The right reply here is simply “No foul,” since adding “harm” would be redundant or ridiculous.
Who first said no harm no foul?
For Sid Borgia is the man who coined the phrase, ‘No harm, no foul,’ which has made a comfortable leap from basketball lingo to accepted American phraseology.” Trivia time: What was unusual about the USC-UCLA basketball games during the 1984-85 season?
What is the purpose of a liquidated damages clause?
A liquidated damages clause specifies a predetermined amount of money that must be paid as damages for failure to perform under a contract. The amount of the liquidated damages is supposed to be the parties’ best estimate at the time they sign the contract of the damages that would be caused by a breach.
What is an example of liquidated damages?
An example of this would be how a contract for a university dorm rental may state: “Students who cancel their dormitory housing agreement after moving into their room shall pay liquidated damages amounting to $5.00/day for the remainder of the rental term (not to exceed $500.00).”
Can you have both liquidated damages and actual damages?
Although the non-breaching party cannot recover both liquidated damages and the actual damages that the parties liquidated, merely agreeing to liquidate one category of damages does not by itself bar the non-breaching party from recovering actual damages for other categories of damages that the parties did not …
Should liquidated damages be a sole and exclusive remedy?
They often argue for the inclusion of an exclusive remedies provision and the deletion of any failsafe clause, suggesting that liquidated damages should be an Owner’s sole entitlement for the Contractor’s delay or underperformance.
Who said no harm no foul?
What does no foul play mean?
“No foul play” is a phrase police have come to use to mean the person who died did not appear to have been attacked by another person; she did not appear to be a victim of a crime.
Where does the term no harm no foul come from?
The phrase no harm no foul is an American phrase that comes from the game of basketball. In basketball, if a player commits a transgression against the rules that doesn’t have an effect on the outcome of the game, the referee should not call a foul against that player.
What do liquidated damages include?
What is covered under liquidated damages?
What are the legal requirements for liquidated damages?
A liquidated damages clause must satisfy certain legal requirements to be presumptively valid. First, the funds defined as liquidated damages must not be excessive; rather, the amount must be a “reasonable estimate” of the seller’s actual loss due to a buyer’s breach.
What happens if there is no liquidated damages clause in purchase agreement?
Moreover, if no liquidated damages clause is contained in the purchase agreement, a seller must prove the amount of the financial loss rather than the pre-negotiated amount and a wrongful breach.However, a liquidated damages clause is merely an approximate measure of damages that a seller may be entitled to due to a buyer’s breach.
What does no harm no foul mean in construction?
This no harm – no foul philosophy is similar to the theory of concurrent delay, which is recognized by the courts. In concurrent delay, performance is delayed by causes attributed to both the Contractor and the Owner, thus neither party can recover compensation for the delay.
Are there liquidated damages clauses in Palo Alto CA?
Liquidated Damages Clauses. Palo Alto, California and the San Francisco Bay Area are home to some of the most expensive residential property in California. Most real estate purchase and sale transactions are completed successfully by well-intentioned buyers and sellers with the assistance of knowledgeable real estate brokers and attorneys.