Dictionary of Procurement Terms

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Search Results: 1-5 of 5 results for “Damages”

  • Actual Damages

    Real damages to compensate for loss or injuries that actually occurred, resulted from another’s wrongdoing, and can be precisely measured.

  • Consequential Damages

    The loss of revenues and/or profits incurred by a purchaser as a result of a seller’s breach; may involve injury to a person or property, including loss of life or business. (ISM, 2000)

  • Damages

    A monetary settlement awarded to a party that is injured through a breach of contract. Compensation, usually monetary, for injury to goods, persons or property. (Harney, 1992)

    See Also: Liquidated Damages, Penalty Charge

  • Liquidated Damages

    Damages paid, usually in the form of a monetary payment, agreed to by the parties to a contract, that are due and payable as damages by the party who breaches all or part of the contract. May be applied on a daily basis for as long as the breach is in effect. May not be imposed as an arbitrary penalty. The key to establishing liquidated damages is reasonableness. It is incumbent upon the buyer to demonstrate, through quantifiable means, that damages did exist.

    See Also: Penalty Charge, Damages

  • Punitive Damages

    Damages that are awarded in a civil action, in addition to compensatory damages, to punish a defendant for gross or willful misconduct. Generally are not recoverable in breach of contract actions. (Garner, 2004)

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