Should Customers Include Liquidated Damages Clauses?
Source: Contract Nerds
Author: Jeanette Nyden, J.D. and Lawrence A. Kane
When was the last time your Liquidated Damages clauses provided a genuine remedy for a supplier’s poor performance? Even if a supplier paid service credits did the money resolve the problem? And, how many times did a supplier pay Liquidated Damages and continue not to perform? These are the questions we ask clients when they want to include Liquidated Damages in their contracts. Our philosophy is that the customer wants performance, not spare change from their supplier’s pockets. Suppliers want to perform and not pay Liquidated Damages. However, we’ve yet to meet a customer stakeholder—whether in legal or in finance—who…