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What is the difference between Liquidated Damages & Penalty clause in a contract?

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Question ajoutée par Swaminathan Nagarajan , Procurement Manager , Shell India Markets Private Ltd
Date de publication: 2018/04/30
NARASIMHA SWAMY TADURI
par NARASIMHA SWAMY TADURI , Projects Engineer , ADMA OPCO

Liquidated damages is the amount fixed by the parties on the basis of probable loss to a party will suffer in case of breach of contract like not  meeting the completion schedule or failure to perform etc., where as the penalty is an amount fixed by way of punishment and as threat to a party for non performance or failure to meet the contractual requirements.

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