When discussing liquidating damages, some of the terminologies can be a bit confusing for the average non-lawyer. When looking at a contract, it’s essential to review the liquidating damages clauses. This term is only referring to any specified compensation amounts payable in the event of an accident. Irwin Law Firm is here for anyone in Miami who needs a maritime accident lawyer or boat accident lawyer. If you have found yourself needing assistance regarding an accident and liquidating damages, our expert lawyer has all the information you need.
The Rundown
Legal contracts are typically between two parties agreeing to offer each other something. In regards to maritime agreements, the parties are paying each other for a service in return. A contract breach occurs when one or either contract holder does not hold up their end of the bargain.
It is not often that contracts will end due to a breach, but more so an agreement made by the breaching party to pay compensation of damages to the contract. When the two parties draft a deal, they will decide on the damage amount before signing in case of a breach. If the agreement contract does not identify the amount, a court will decide. In this case, one or both parties should acquire legal guidance from a maritime accident lawyer.
Offering An Example
Take demurrage, for example. Essentially this is the agreement made when the ship is hired and specified the vessel will spend one day at the loading port and one day at the discharge port. The contract is signed and drafted, and both parties agree on the given timeframe. If the ship exceeds the identified time frame and the boat stays at either port for longer, the ship hiree will be responsible for paying for time exceeded. The compensation of “damages” is either predetermined in the contract or decided through litigation.
Liquidating Damages
Because litigation can be costly, it is best practice for both parties to determine the monetary compensations that will be due in case of a breach. In most long-term agreements, small breaches will often happen, so it is vital to plan ahead of time. The term liquidating damages simply refers to the amounts specified in the event of a violation.
Understanding Penalty Clause
The amount must encompass the damage the breach has had on the opposite party. If the amount specified is not a fair reflection of the breach’s effect, the court can determine it is not able to be enforced.
The Right Maritime Accident Lawyer
With more than two decades of experience serving the Miami and Fort Lauderdale communities, Irwin Law Firm has the credentials and expertise to help you with liquidating damages. Finding an experienced boat accident lawyer is comfortable with Irwin Law Firm. Our experience in maritime law is what the best boat accident lawyer should have. Need legal assistance? Contact us at our Miami or Fort Lauderdale offices today to learn more about how we can help you.