Liquidated damages while not present in every contract, there
will arise occasions where liquidated damages are mentioned within
contracts and provide necessary assurance and security. There are
numerous benefits, though also some drawbacks to this type of
clause. The method of awarding damages also differs around the
world depending on the type of legal system in place within a
jurisdiction and nation.
Common Law and Civil Law nations have differing ideas when it
comes to this topic. In this piece, we will look into the concept
of liquidated damages to summarise what the implications are across
a few jurisdictions.
Common Law Jurisdictions
Common law was first introduced in England in the King's
Court following the Norman Conquest around the 11 century. The
system spread across the globe and throughout the British Empire.
Many of these nations still adopt the common law legal system to
this day to varying extents.
