Liquidated damages clauses (also known as agreed damages clauses) define the amount recoverable should a particular event occur. These clauses are common in commercial contracts, particularly in construction, engineering, technology, outsourcing and supply of goods contracts. Hesketh Henry’s construction team has partnered with Practical Law New Zealand to publish a new standard form liquidated damages clause tailored specifically for the New Zealand market considering recent domestic and international developments. The clause is accompanied by integrated drafting notes that provide insight into what liquidated damages are, why a liquidated damages clause is important, and key considerations for drafting. This clause and drafting notes will benefit anyone drafting contracts that seek to clearly quantify and allocate the risk of certain events occurring between the contractual parties. You can view this here.
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