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Take notice of liquidated damages

By: Language: English Series: Construction News ; (7033) 30 August 2007, 20(1) Publication details: 2007Subject(s): Summary: Examines clauses providing for liquidated damages in the JCT standard forms of contract. Liquidated damages clauses avoid the legal obstacles of proving actual loss as a result of breach of contract. Explains how the clauses of the JCT forms provide a code for the payment of liquidated damages and outlines the three conditions that have to be met before the employer has the right to deduct liquidated damages. Discusses these issues in more detail with reference to "A Bell and Son (Paddington) v CBF Residential Care and Housing Association" (QBD, Abs41092), "J F Finnegan v Community Housing" (CA, 77 BLR 22) and "Reinwood v L Brown and Sons" (QBD, L137927).

Examines clauses providing for liquidated damages in the JCT standard forms of contract. Liquidated damages clauses avoid the legal obstacles of proving actual loss as a result of breach of contract. Explains how the clauses of the JCT forms provide a code for the payment of liquidated damages and outlines the three conditions that have to be met before the employer has the right to deduct liquidated damages. Discusses these issues in more detail with reference to "A Bell and Son (Paddington) v CBF Residential Care and Housing Association" (QBD, Abs41092), "J F Finnegan v Community Housing" (CA, 77 BLR 22) and "Reinwood v L Brown and Sons" (QBD, L137927).