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Agreed Payment for Non-performance in International Commercial Contracts

Hälinen, Mila LU (2021) HARN63 20211
Department of Business Law
Abstract
The commercial contracts commonly require an agreed payment clause for nonperformance. This clause provides agreed statement of the amount recovered by
the innocent party in case of a breach of contract. The term, agreed payment for
non-performance includes two types of clauses, penalty clause and liquidated
damages clause. The penalty clause and liquidated damages clause have similar
features but are treated very differently in certain jurisdictions. The international
law does not specifically state anything regarding this topic but the model rules are
presented and compared in this thesis. The background law of the contract defines
how the liquidated damages clause and penalty clause are treated and validated.
The... (More)
The commercial contracts commonly require an agreed payment clause for nonperformance. This clause provides agreed statement of the amount recovered by
the innocent party in case of a breach of contract. The term, agreed payment for
non-performance includes two types of clauses, penalty clause and liquidated
damages clause. The penalty clause and liquidated damages clause have similar
features but are treated very differently in certain jurisdictions. The international
law does not specifically state anything regarding this topic but the model rules are
presented and compared in this thesis. The background law of the contract defines
how the liquidated damages clause and penalty clause are treated and validated.
The benefits and the validity of the agreed payment for non-performance clauses
are analysed in this thesis by using Finnish law and English law as an approach. (Less)
Please use this url to cite or link to this publication:
author
Hälinen, Mila LU
supervisor
organization
course
HARN63 20211
year
type
H1 - Master's Degree (One Year)
subject
keywords
International, Commercial, Contracts, Penalty, Clause, Liquidated damages
language
English
id
9073178
date added to LUP
2022-01-21 13:37:26
date last changed
2022-01-21 13:37:26
@misc{9073178,
  abstract     = {{The commercial contracts commonly require an agreed payment clause for nonperformance. This clause provides agreed statement of the amount recovered by 
the innocent party in case of a breach of contract. The term, agreed payment for 
non-performance includes two types of clauses, penalty clause and liquidated 
damages clause. The penalty clause and liquidated damages clause have similar 
features but are treated very differently in certain jurisdictions. The international 
law does not specifically state anything regarding this topic but the model rules are 
presented and compared in this thesis. The background law of the contract defines 
how the liquidated damages clause and penalty clause are treated and validated. 
The benefits and the validity of the agreed payment for non-performance clauses 
are analysed in this thesis by using Finnish law and English law as an approach.}},
  author       = {{Hälinen, Mila}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Agreed Payment for Non-performance in International Commercial Contracts}},
  year         = {{2021}},
}