Is a penalty or liquidated damages for breach of contract enforceable?
Alberta, Canada
The following excerpt is from Charterhouse Leasing Corporation Limited v. Sanmac Holdings Ltd., 1966 CanLII 410 (AB QB):
3. The question whether a sum stipulated is penalty or liquidated damages is a question of construction to be decided upon the terms and inherent circumstances of each particular contract, judged of as at the time of the making of the contract, not as at the time of the breach (Public Works Commissioner v. Hills, [1906] A.C. 368, and Webster v. Bosanquet, [1912] A.C. 894).
"The most advanced legal research software ever built."
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.
Other Questions
Is a contract enforceable for breach of contract when the contract is not enforceable? (Alberta, Canada)
In what circumstances will a party be bound by the elements of a contract where the contract is not enforceable when the contract was signed? (Alberta, Canada)
What is the legal test for damages for psychological damage arising from a breach of contract? (Alberta, Canada)
What is the test for pre-judgment interest in assessing damages for breach of contract? (Alberta, Canada)
Is a contract enforceable if the terms of the contract are unclear or uncertain or incomplete? (Alberta, Canada)
How have courts interpreted the test for assessing damages for breach of contract? (Alberta, Canada)
Can facts establish a breach of contract and arise from carelessness in the performance of the contract? (Alberta, Canada)
How have the courts interpreted the meaning of the word "contract" in the context of an enforceable contract? (Alberta, Canada)
What is the test for determining the measure of damages for breach of contract? (Alberta, Canada)
What is the quantum of damages available to a plaintiff for breach of contract? (Alberta, Canada)
