Liquidated damages

A creditor and a debtor may stipulate that the debtor shall pay to the creditor a specific sum or supply him with some other property benefit, should he fail to perform his non-monetary obligation, or delay in performing it (liquidated damages).

Unless something else results from contract, liquidated damages shall be considered as stipulated for the case of a debtor becoming late in performance.

Liquidated damages shall not be stipulated in relation to monetary obligations.

Method of Calculation

Contracting parties may determine the amount of liquidated damages as they please, either in form of a lump sum or as a percentage, or for each day of delay, or in some other way. Continue reading Liquidated damages