Liquidation damages

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Liquidation damages

Post by jp79 on Fri Nov 14, 2014 4:42 pm

Question No.1: For example, the delivery date of the goods was on November 3, 2014 but the goods were delivered partially on    November 4, 2014. Was there already a one (1) day liquidation damages?

Question No.2: For example, the delivery date is on Nov. 17, 2014 but it is delivered on Nov. 20, 2014. Is Nov. 20 should be     counted in the computation of LD or not?


THANK YOU.

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Re: Liquidation damages

Post by attywaws on Fri Nov 21, 2014 3:35 pm

Hi!

For question no. 1 - Yes, you should start to compute liquidated damages starting Nov. 4, this is despite the fact that partial delivery has been made on that day. When the delivery was not made on Nov. 3, the contractor has already incurred delay. Please be reminded that making the partial delivery does not relieve the contractor of his responsibility for the delay.

For question no. 2 - Yes. In counting of periods, the first day (Nov. 17) should be excluded and the last day (Nov. 20) should be included. In the given example, there is a 3 day delay incurred by the contractor.
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Re: Liquidation damages

Post by jp79 on Fri Nov 21, 2014 4:54 pm

Thank you so much for the reply mr. waws20.

I have another question for indeed clarification for the computation of LD.

This is with regards to my question no. 1. What if the goods were delivered completely on Nov. 4, 2014, I believe that there was already a one (1) day computation of LD. The rule is just the same for complete and partial delivery. Am I correct Sir?

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Re: Liquidation damages

Post by attywaws on Mon Nov 24, 2014 9:46 am

Hi!

Yes you are correct that there is no difference between partial delivery and full delivery that was made on the same day. The important factor there is that there is delay incurred in the delivery of the goods. It is not even important for the Procuring Entity to show that it has suffered damages for such delay. It is the mere fact of delay which entitles the Procuring Entity to liquidated damages.

Moreover, this view is supported by the legal maxim "where the law does not distinguish, we should not distinguish", such that, when the law says "delay in the delivery" there is no distinction between partial and full delivery.

You are most welcome.
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Re: Liquidation damages

Post by xed on Mon Dec 08, 2014 5:17 pm

hi!

When is the goods considered delivered, upon full delivery of the items or upon acceptance of the procuring entity?

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Re: Liquidation damages

Post by attywaws on Wed Dec 17, 2014 4:00 pm

Hi!

The goods may be considered delivered only when the procuring entity has already accepted the goods. This is because "actual delivery" occurs only when the thing is placed under the control of the procuring entity.
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