Can I sue for liquidated damages?

In California, it is possible to enforce a liquidated damages clause. The amount agreed to at the time that you and the other party sign the contract must be a reasonable estimate of losses that may be suffered should they fail to perform.

Is a debt a liquidated claim?

The Magistrates Court hears claims for damages as well as debts. Broadly speaking, damages are compensation for a loss suffered by one person as the result of another person’s action or failure to act. A debt, however, is a liquidated (i.e. known) amount that is owed by the debtor to the creditor.

What is liquidated debt?

Liquidated debts are those whose amounts are known and agreed upon. If there are disputes about a debt, or it is contingent on another event, then the debt is said to be unliquidated.

Can you claim against a liquidated company?

However, no claim can be brought against a company once it has been dissolved after completion of the liquidation, as it will have lost its legal identity. In order to bring a claim against a dissolved defendant, the relevant company would first need to be restored to the Register of Companies.

What does it mean when a debt is liquidated?

Liquidated debts are those whose amounts are known and agreed upon. If there are disputes about a debt, or it is contingent on another event, then the debt is said to be unliquidated. Sometimes these disputes can be resolved between parties or in reference to a contract, but in other cases, the courts will have to be involved to liquidate the debt.

What do you need to know about liquidated damages?

A liquidated damages clause specifies a predetermined amount of money that must be paid as damages for failure to perform under a contract.

When is a claim considered a liquidated claim?

For instance, if there was no dispute as to prices of material or hours of labor in a service agreement, and the basis of computation is provided in the agreement, the claim is deemed to be a liquidated one. [vi]

What happens when a breach of contract is liquidated?

If a breach occurs and the liquidated damages clause is enforceable, the parties do not calculate the actual damages (i.e., how much money a party actually lost as a result of the breach). Instead, the breaching party pays the predetermined sum provided by the liquidated damages provision.