When, from the nature of the case, and the tenor of the agreement, it is clear, that the damages have been the subject of actual and fair calculation and adjustment between the parties.
Attorneys who draft restrictive covenant agreements can provide their clients with a more effective - and efficient - remedy by being aware of the law concerning liquidated damages clauses only (1) where the damages which the parties reasonably anticipate are difficult to ascertain because of their indefiniteness or uncertainty and (2) where the amount stipulated is either a reasonable estimate of the damages which would probably be caused by a breach or is reasonably proportionate to the damages which have actually been caused by the breach.
The use and enforcement of liquidated damages clauses have changed over the years.
Today section 2-718(1) of the Uniform Commercial Code deals with the difference between a valid liquidated damages clause and an invalid penalty clause.
Liquidated damages clauses possess several contractual advantages.
If there is a surplus after payment of all creditors, this is distributed pro rata amongst the shareholders of the company. Corporate changes: the property/casualty industry continued to consolidate, as state regulators kept a close watch on companies' viability and mergers and acquisitions maintained a healthy pace in 2001.
(Property/Casualty) exists when a corporation ceases to be a going concern and its activities are merely for the purpose of winding up its affairs, paying its debts and distributing any remaining balance to its shareholders (Regs.
Monetary compensation for a loss, detriment, or injury to a person or a person's rights or property, awarded by a court judgment or by a contract stipulation regarding breach of contract.
Generally, contracts that involve the exchange of money or the promise of performance have a liquidated damages stipulation.
The proceeds of the sale are used to discharge any outstanding liabilities to the creditors of the company.
If there are insufficient funds to pay all creditors (INSOLVENCY), preferential creditors are paid first (for example the INLAND REVENUE for tax due), then ordinary creditors pro rata.
If there is a surplus after payment of all creditors this is distributed pro rata amongst the ordinary shareholders of the company. the process by which a JOINT-STOCK COMPANY's existence as a legal entity ceases by ‘winding up’ the company.
Such a process can be initiated at the behest of the CREDITORS where the company is insolvent (a compulsory winding-up) or by the company directors or SHAREHOLDERS, in which case it is known as a voluntary winding-up.
Liquidated damages: the forgotten remedy in noncompete disputes: damages are often difficult to prove in unfair competition cases.Tags: Adult Dating, affair dating, sex dating