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Penalty clauses in contract law cover provisions that charge a party a sum if they breach a contract, and how those sums are treated in court. A solicitor in this area reviews, drafts and negotiates terms to avoid unenforceable penalties and to secure a genuine pre-estimate of loss, drafting alternatives such as liquidated damages. They advise on breach, remedies, disclosure of the clause, and whether relief from penalties may be sought. They also navigate enforcement and court applications when disputes arise.
A solicitor handles the drafting and review of loss-based sums, ensuring a genuine pre-estimate of loss and avoiding penalties. They interpret whether a clause is enforceable, draft liquidated damages provisions, advise on breach consequences, collect relevant evidence, and assist with court applications to enforce or strike out terms in disputes.
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