Liquidated Damages Clauses in Australian Contract Law: Penalty or Genuine Estimate of Loss?
Liquidated damages clauses play a pivotal role in Australian contract law, offering numerous benefits to contracting parties. However, these clauses must be carefully drafted to avoid being considered a penalty, which would render them unenforceable. This article explores the importance of liquidated damages clauses in Australian contract law, the potential risks associated with them, and best practices for drafting enforceable clauses.