When times are challenging, many businesses struggle to meet their contractual obligations. If the contract provides for a penalty, will it be enforceable? Both parties need to know where they stand. For the defaulting party, how can it calculate its realistic exposure? For the innocent party, what are the chances of bringing a successful claim in court?
In this webinar Changez Khan will cover the following issues:
- How do you spot a penalty clause?
- What is the legal test on enforceability and how is it being applied by the courts?
- Waiver: when will a party be deemed to have waived a penalty?
- Some practical tips: drafting, enforcing and resisting contractual penalties.