Stipulated damages

STIPULATED DAMAGES, contracts. The sum agreed by the parties to be paid, on a breach of a contract, by the party violating his engagement to the other.
     2. It is difficult to distinguish, in some cases, between stipulated damages and a penalty; (q.v.) 3 Chitty's Commer. Law, 627; 2 Bos. & Pull. 346. The effect of inserting stipulated damages, either at law or equity, a pears to be, that both parties must abide by the stipulation, and the prescribed sum must be given. Holt, C. N. P. 46 Newl. Contr. 313; see 5 Taunt. Rep. 247. Vide Damages, Liquidated.

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This edition also contains expanded material on electronic contracting, a reorganized remedies chapter, and revised and reorganized material on areas including promissory estoppel and stipulated damages.
Awaits sentencing after pleading guilty on June 28, 2011 to one count of mail fraud with stipulated damages of between $2.
And it would allow state judges to make a determination that returning stipulated damages to victims is "not practicable" and send the money directly to the legal aid fund, a potential due process violation, they said.
Thus, like conditions, stipulated damages are tools that a promisor may use to allocate risks.
To begin with, a central problem with penalty doctrine, at least in its traditional form, is that it determines the enforceability of stipulated damages clauses without reference to other terms of the contract.
the damages are higher) than paying the expectation-level damages in a contract without stipulated damages.
In such an eventuality, he said, a party could be absolved of his contractual liability without that party having to pay the stipulated damages in the event of a violation.
Such situations put the court in the position of deciding "whether or not it will rewrite the contract by striking the stipulated damages clause as a penalty.
Therefore, parties should resort to liquidated or stipulated damages provisions in contracts, whenever possible.
It does this by sometimes declining to award expectancy damages, often in the very situations where stipulation seems sensible, and also by providing expectancy damages where the award of stipulated damages is regarded as a penalty.