Edged Sword
by Reina Calderon, Esq.
JLC ·
THE LEGAL COLUMN
Damages: a Double-
Liquidated
ECEMBER 1988 D
Owners negotiating contracts with
general contractors frequently insist
on a "liquidated damages" provision.
This is a clause that provides for
defaults in performance: The defaulter
will pay the injured party a sum of
money agreed upon by both parties in
advance. Having a liquidated damages
clause in the construction contract
means that if the owner ever sues the
contractor for failure to perform, the
owner's job in court will be much
easier. Theoretically, all that an
injured party must do at this point is
show that the defaulter failed to
perform. He doesn't have to prove
how much he suffered (the amount of
damages) because the