RE: NGC contract20 Jan 2021 22:49
penalty clauses have basically been deemed unenforceable as Dunderhead says , a penalty clause cannot be punitive , failiure to perform a contract results in damages based on the cost of the aggreived party , not some declared figure in a contract , not sure how this is reflected in the TXP contract , but that is my understanding of contract law in construction and other commercial contracts , my friend works for Kier as General Manager and this is what he informed me he was advised at a seminar - My guess is that should either party fail to peform their part of the contract due to neglect or incompetence , then damages would flow as a matter of course , but they would be strictly limited to provable costs