Damages Sample Clauses: 13k Samples | Law Insider (2024)

FAQs

What is an example of a damage clause? ›

Examples of damages clause:

Example 1: A construction contract might have a damages clause stating that if the contractor fails to complete the project by the agreed-upon date, they will be liable for liquidated damages of $1,000 per day for each day the project is delayed.

Standard Clause requiring the breaching party to pay a pre-determined amount to the non-breaching party as exclusive compensation for the breaching party's failure to perform a specific task or comply with a particular obligation.

In tort law, actual damages, also known as compensatory damages, are damages awarded by a court equivalent to the loss a party suffered. If a party's right was technically violated but they suffered no harm or losses, a court may instead grant nominal damages. The Supreme Court held in Birdsall v.

A liability clause is a section of a contract that limits the amount of money one party has to pay another if damages specified in a business contract between the two parties occurs. Typically, liability clauses limit one party's liability to a fixed dollar amount.

A general damages clause is typically used to offer protection for any breach of contract claim, including delayed completion. The amount of damages to be awarded under a general damages clause is not fixed but will instead reflect the actual losses caused by the breach.

There are three types of damages in personal injury claims: non-economic damages, economic damages, and punitive damages. Special and general damages are alternative terms used to describe economic and non-economic losses.

A limitation of liability clause limits the amount and/or types of damages that may be attributable to a particular party under the contract for that party's future breach, misconduct while performing under the contract, or indemnification liability. Sample Language: [Section #] Limitation of Liability.

The damage rule, also known as the legal-injury rule, is a legal doctrine that states that the statute of limitations on a claim does not begin to run until the claimant has sustained some legally actionable damage. This means that the limitations period is paused until the plaintiff has actually been injured.

For the plaintiff, nominal damages verify that there was sound legal backing for the filing of a lawsuit. It also proves that the defendant's behavior or actions were wrong. Although there was virtually no financial loss, the defendant must still accept responsibility for their wrongdoing.

One common example of liquidated damages occurs when purchasing a house. If a buyer cannot purchase the house by the closing date, then the buyer might have to forfeit any earnest money or other deposits paid to the seller. Another example of liquidated damages could be in a construction contract.

What is the disclaimer of damages clause? ›

Disclaimer of damages clause samples

IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL, PUNITIVE, EXEMPLARY, INCIDENTAL OR CONSEQUENTIAL DAMAGES. THIS LIMITATION WILL APPLY REGARDLESS OF WHETHER OR NOT THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

Expectation damages are damages that can be recovered from a contract breach by the non-breaching party. It intends to put the non-breaching party in as good of a position as if the breaching party fully performed their contractual duties.

Sample liquidated damages clause: In the event of delay in [type of project] completion, the [performing party] shall pay liquidated damages to [the owner] in the amount of [dollar amount per day/week, etc.] [or] ["X" percent of the total contract price per day/week, etc.].

A liability cap clause limits the maximum monetary damages or compensation one party can recover from the other party for claims arising under the contract, irrespective of the actual damages suffered, to an agreed-upon predetermined amount or calculation methodology.

In contract law, special damages (also called consequential damages) refer to irregular damages such as physical injuries during a breach of contract, but general damages would refer to the damages expected from the contract being breached.

Examples of damage in a Sentence

The fall caused considerable damage to her knee. The disease is known to cause permanent brain damage. The scandal caused significant damage to her career.

Special damages

For example, if one party knew that the other party would incur a fine if the contract was not completed on time, but still delayed the performance of the contract.

Examples of general damages include: physical pain and suffering (compensation for being in pain); physical injury or impairment (disfigurement or disability); mental pain and anguish (trauma, stress and anxiety); diminished quality of life (relying on others, lack of mobility, etc.); loss of companionship and support ...

Examples of consequential damages are loss of goodwill and reputational damage resulting from a company's unsuccessful efforts to repair defective products. A damaged reputation means that even when the company does repair the defects, it will still be negatively impacted in terms of sales.