Liquidated Damage Clauses

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Statutes

"Generally under 13 Pa S.C.A § 2A503:

a lease agreement may include rights and remedies for default in addition to or in substitution for those provided in this division and may limit or alter the measure of damages recoverable under this division.

Section 13 Pa S.C.A § 2A504 pertains directly to liquidated damages, and it provides as a general rules that:

Damages payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss or damage to lessor's residual interest, may be liquidated in the lease agreement but only at an amount or by a formula that is reasonable in light of the then anticipated harm caused by the default or other act or omission."

Cases

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Contributors

Lawrence F. Flick, II
Blank Rome LLP

The statutory information was edited and reviewed with the support of MultiState

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