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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Liquidated damages
Sir as we know that if the clause has following characteristics then it will be regarded as liquidated damages:
1) claused amount must not be greater than contract price
2) claused amount must not determine single remedy for all kinds of losses
Sir my question is that both of the above conditions need to be fulfilled for the clause to be liquidated damages OR even if any one of the above condition is fulfilled then it will be regarded as liquidated damages?
It must be both – it wouldn’t make sense it it was necessary to satisfy only one of the two – just think about it!