One Minute of Legal English

Follow Anglofon Studio’s blog!

Tag: penalty

Difference between penalty and liquidated damages


Liquidated damages is a concept that often results in confusion when used in continental law. This article aims at clarifying the difference between liquidated damages and penalty, and to advise on the correct terminology in situations when a delay or non-performance is penalized under the civil law. Liquidated damages is a common law term which means that the parties agree on a sum to be paid if a party fails to fulfill an obligation. It also means that if the concept of liquidated damages is applied, then the defaulting party must pay...

Tags: liquidated damages, penalty

We only use the provided data for the service provided by us and for the smooth administration of such service. We keep the data provided here strictly in confidence and will not disclose such data to third parties. Data Controlling Registration No.: NAIH-72639/2014 Privacy Policy