Written by LIQUIDATED DAMAGES AND PENALTY-ALL YOU NEED TO KNOW
In the event of a breach of contract, the party at default must pay liquidated damages and penalty to the aggrieved party. Liquidated damages and penalty clauses are not synonymous and there is a difference between the two. These terms are often used interchangeably and sometimes create confusion even in the court of law.. Whenever there is a breach of contract the aggrieved party asks the other party to compensate the damages or loss caused to it. Here at this moment, there comes a picture of the penalty and damages given by the party committing the breach to the aggrieved party…………..
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