Dictionary of Procurement Terms

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Search Results: 1-1 of 1 result for “Liquidated Damages”

  • 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

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