Chapter

Agreed remedies

Paul S Davies

in JC Smith's The Law of Contract

Published on behalf of Oxford University Press

Published in print April 2016 | ISBN: 9780198733539
Published online September 2016 | e-ISBN: 9780191797842 | DOI: http://dx.doi.org/10.1093/he/9780198733539.003.0027
Agreed remedies

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This chapter focuses on remedies agreed by the parties for breach of contact. Parties may wish to include a term in the contract which dictates what should happen in the event of breach of contract. If the term states that a certain amount of damages should be paid upon breach, that term might be valid as a liquidated damages clause or unenforceable as a penalty. If the amount chosen is a genuine pre-estimate of loss, or is ‘commercially justified’, then it is likely to be valid. If the defaulting party had already paid money to the innocent party as a deposit, the innocent party may be able to forfeit that deposit. A term stipulating that specific performance or an injunction will be granted upon breach will not bind the court. However, the court may take into account such a term when deciding whether to exercise its equitable discretion.

Keywords: contract law; breach of contract; remedies; liquidated damages; penalties

Chapter.  11629 words. 

Subjects: Contract Law

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