selective beginnings dating service - Performance criteria liquidating damages

Swiss statutory law contains many general and specific contractual rules and also regulates certain types of contracts such as purchase and work contracts.

However, subject to mandatory legal provisions, the parties are generally free to deviate from the statutory law by altering provisions or adding new ones.

It is presumed that the creditor cannot claim for additional damages (limitation of liability; see above). In contrast, if the parties agree upon a contractual penalty, generally the creditor is not required to prove any actual damage incurred for the enforcement of such a contractual penalty.

This restriction allows the obligor to withdraw from the contract by paying the amount of the penalty (art. To assess whether the parties agreed upon liquidated damages or a contractual penalty the true intention of the parties is relevant rather then the potentially incorrect designation.22 On the one hand, the circumstance that the parties intended to primarily provide for a form of leverage, speaks for the contractual penalty.

Liquidated damages are an amount estimated to equal, or best approximate, the amount of loss an innocent party will incur if the contract is breached.

Comments