Liquidated damages

As liquidate dated damages ( liquidated damages english ) a lump-sum compensation is referred to in the Anglo - American and international law.

Such is agreed in most contracts in international plant instead of penalty ( English penalty ) because in many countries, agreements of penalties are not permitted according to the principles of the common law. With the agreement of liqui dated damages the customer is not obliged to substantiate the amount of loss, because even a reasonable damage estimate was already specified in the contract.

The liquidated damages must be such that it therefore constitutes reasonable compensation for the damage to be expected and therefore does not have the character of a punishment.