liquidated damages philippines

10 de dezembro de 2020

Gerais

The facts of the case, as culled from the records, are as follows: Respondent Herbal Cove Realty Corporation (respondent) engaged DP Architects Philippines to prepare architectural designs and RA&A Associates to provide engineering designs for its subdivision project known as "The Herbal Cove" located at Iruhin West, Tagaytay City. 2212. 2218. Art. Philippine Justice also allows you to search for a case or research an attorney. However, if the project is substantially completed, meaning the owner can make use of the project beneficially, then they may not be able to assess liquidated damages. Nominal damages are adjudicated in order that a right of the plaintiff, which has been violated or invaded by the defendant, may be vindicated or recognized, and not for the purpose of indemnifying the plaintiff for any loss suffered by him. Interest cannot be recovered upon unliquidated claims or damages, except when the demand can be established with reasonably certainty. 2219. Art. Art. Art. Tagged as 18. The CIAC found that petitioner incurred delay in the completion of the project. On June 3, 1998, respondent filed with the CIAC a Request for Arbitration19 against petitioner praying for the payment of liquidated damages, cost to remedy defective workmanship, excess costs incurred to complete the work, attorney�s fees and litigation expenses. Subcontracts and liquidated damages. 16 Exhibit "T"; Expanding Envelope No. Damages, Book 4: Obligations & Contracts, 0. Liquidated Damages. Art. Art. Art. The excess cost incurred by the Owner in the completion of the project over the Contract Price. 48 Advanced Foundation Construction Systems Corporation v. New World Properties and Ventures, Inc., G.R. The applicable liquidated damages is at least one-tenth (1/10) of a percent of the cost of Clause 9.1. Liquidated damages, whether intended as an indemnity or a penalty, shall be equitably reduced if they are iniquitous or unconscionable. 33 The decision was embodied in a Minute Resolution dated March 6, 2000. Tagged as 18. 9. 14. 1. liquidated damages 4. advance payment 5. other rules and guidelines back. 143154, June 21, 2006, 491 SCRA 557, 579-580. The court may award nominal damages in every obligation arising from any source enumerated in Article 1157, or in every case where any property right has been invaded. In case of fraud, bad faith, malice or wanton attitude, the obligor shall be responsible for all damages which may be reasonably attributed to the non-performance of the obligation. 18 Exhibit "V"; Expanding Envelope No. The provisions of this Title shall be respectively applicable to all obligations mentioned in Article 1157. Rights & Obligations Between Husband & Wife, 06. Additional extension was requested due to bad weather condition that prevailed during the implementation of the projects, again causing excusable delay. Consequently, and pursuant to the agreement of the parties, petitioner is liable for liquidated damages in the amount of P 29,440.00 per day of delay, which shall be limited to a maximum of 10% of the project cost or P 294,400.00. The case concerned a sub-contract between Bluewater Energy Services and Mercon Steel Structures as part of a wide … * Designated Acting Member, per Special Order No. Additionally, due to the termination of the contract by reason of its default, the PAFPC may likewise hold the supplier administratively liable and suspend it from participating in any of its public bidding for one (1) year for the first (1st) offense or two (2) years for the second (2nd) offense. 180898, April 18, 2012; Filinvest Land, Inc. v. Court of Appeals, G.R. Section 2: Any sum which may be payable to the OWNER for such liquidated damages may be deducted from the amounts retained under Article V, or retained by the OWNER from any balance of whatever nature which may be due or become due the CONTRACTOR when any particular works called for under this Contract shall have been finished or completed. Create a free website or blog at WordPress.com. An average of the likely costs which may be incurred in dealing with a breach may be used. – DAMAGES Art. In the absence of stipulation, attorney’s fees and expenses of litigation, other than judicial costs, cannot be recovered, except: (2) When the defendant’s act or omission has compelled the plaintiff to litigate with third persons or to incur expenses to protect his interest; (3) In criminal cases of malicious prosecution against the plaintiff; (4) In case of a clearly unfounded civil action or proceeding against the plaintiff; (5) Where the defendant acted in gross and evident bad faith in refusing to satisfy the plaintiff’s plainly valid, just and demandable claim; (7) In actions for the recovery of wages of household helpers, laborers and skilled workers; (8) In actions for indemnity under workmen’s compensation and employer’s liability laws; (9) In a separate civil action to recover civil liability arising from a crime; (10) When at least double judicial costs are awarded; (11) In any other case where the court deems it just and equitable that attorney’s fees and expenses of litigation should be recovered. 2228. Emergency Pawnshop Bula, Inc. et al. A penal clause is an accessory undertaking to assume greater liability in case of a breach. Are liquidated damages clauses always to the benefit of operators, or can owners also benefit from them? As a general rule, contracts constitute the law between the parties, and they are bound by its stipulations. Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of breach thereof. No. 2221. Section 4, Article IX of the Construction Contract states: Moreover, Article 21.05 of the General Conditions amplifies petitioner�s liability for damages, to wit: 21.05. Lack of interest to make a firm commitment to finish the project.17. The principles of the general law on damages are hereby adopted insofar as they are not inconsistent with this Code. Such damages are separate and distinct from fines and shall be paid to the offended party. In crimes and quasi-delicts, the defendant shall be liable for all damages which are the natural and probable consequences of the act or omission complained of. Though incapable of pecuniary computation, moral damages may be recovered if they are the proximate result of the defendant’s wrongful act for omission. 10. Art. Income divided by foreign government in the Philippines is taxable 13. On September 22, 1997, respondent required petitioner to submit a formal written commitment to finish and complete the contracted works, otherwise, the contract would be deemed terminated and respondent would take over the project on October 1, 1997 with the corresponding charges for the excess cost occasioned thereby, plus liquidated damages.16 On October 3, 1997, respondent informed petitioner that the former�s management had unanimously agreed to terminate the subject construction contract for the following reasons: 1. 2215. No. A perusal of the significant provisions of the Construction Contract as quoted above and the relevant construction documents would show that the CA did not err in concluding that the rights to liquidated damages and to terminate the contract are distinct remedies that are available to respondent. While the amount of the exemplary damages need not be proved, the plaintiff must show that he is entitled to moral, temperate or compensatory damages before the court may consider the question of whether or not exemplary damages should be awarded. Interest may, in the discretion of the court, be allowed upon damages awarded for breach of contract. Damages, Book 4: Obligations & Contracts, General Provisions, Title XVIII. Petitioner was allowed to complete and deliver the housing units until the following dates: SDA-15 15 March 1997 or an extension of 67 calendar days, TH 16-A and TH 16-B 7 March 1997 or an extension of 59 calendar days, TH 17-A and TH 17-B 7 April 1997 or an extension of 90 calendar days15. CHAPTER 1 > GENERAL PROVISIONS. Respondent interposed a separate appeal assailing the same CIAC decision, docketed as CA-G.R. (1106). 1. Willful injury to property may be a legal ground for awarding moral damages if the court should find that, under the circumstances, such damages are justly due. Respondent questioned the CIAC�s failure to dismiss petitioner�s counterclaims on the ground of forum shopping. 2227. Petitioner was instructed to commence construction on July 8, 1996.12 In a letter13 dated January 6, 1997, petitioner requested for extension of time equivalent to the number of days of delay in the start of the works brought about by the belated turnover of the sites of the building. 42 Empire East Land Holdings, Inc. v. Capitol Industrial Construction Groups, Inc., supra note 39, at 489. Art. 1. All prizes and awards are subject to income tax. Liquidated damages for failure to deliver an obligation at a guaranteed date represent indemnification for the unexpected loss of assets, and are not subject to VAT. Liquidated damages, whether intended as an indemnity or a penalty, shall be equitably reduced if they are iniquitous or unconscionable. 531, 536 (2003). Article 2227. 2232. 2207. Liquidated damages are frequently agreed upon by the parties, either by way of penalty or in order to avoid controversy on the amount of damages. 9 Exhibit "H"; Expanding Envelope No. Damages, Actual or Compensatory Damages, Book 4: Obligations & Contracts. Also, Section 3, Article V of the Construction Contract emphasizes that any extension in the contract period must be in writing, to wit: Section 3: The OWNER may, at any time during the progress of the performance of the Works in the PROJECT, order a change or changes in the plans and specifications; provided, that in such cases, any increase or decrease in the Contract Price above stipulated shall be subject to proportionate adjustment mutually agreed upon. Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of breach thereof. The adjudication of nominal damages shall preclude further contest upon the right involved and all accessory questions, as between the parties to the suit, or their respective heirs and assigns. This is a petition for review on certiorari under Rule 45 of the Rules of Court assailing the Court of Appeals (CA) Decision1 dated February 28, 2005 and Resolutions dated September 7, 20052 and December 5, 20053 in CA-G.R. After the reception of the parties� evidence and the submission of their respective memoranda, the CIAC ordered respondent to pay petitioner P1,087,187.80, with 6% interest per annum from the time the award becomes executory.24 The CIAC summarized the awards as follows: Materials, tools and equipment left at jobsite, Rental cost of tools and equipment left at jobsite, Attorney�s Fees and Cost of Litigation excluding Arbitration Fees, Net Award P 1,087,187.8025. No. 13-98; while the assailed. On June 20, 1996, respondent and Atlantic Erectors, Inc. (petitioner) entered into a Construction Contract5 whereby the latter agreed to undertake, accomplish and complete the entire works for the implementation of Construction Package A consisting of four (4) units of Townhouse B and 1 unit of Single Detached A1 of the project6 for a total contract price of P15,726,745.197 which was later adjusted to P16,726,745.19 as a result of additional works.8 Petitioner further agreed to finish and complete the works and deliver the same to respondent within a period of one hundred eighty (180) consecutive calendar days reckoned from the date indicated in the Notice to Proceed9 to be issued to petitioner.10 To secure the completion of the works within the time stipulated, petitioner agreed to pay respondent liquidated damages equivalent to one-tenth of one percent (1/10 of 1%) of the contract price per calendar day of delay until completion, delivery and acceptance of the said works by respondent to a maximum amount not to exceed ten percent (10%).11. Rules governing damages laid down in other laws shall be observed insofar as they are not in conflict with this Code. 2211. For liquidated damages to be enforceable in court, the court requires that they are a reasonable amount. Authority for the proposition that averaging is the appropriate approach … LIQUIDATED DAMAGES: If Buyer fails to complete this purchase because of Buyer’s default, Seller shall retain, as liquidated damages the deposit actually paid. No. SP No. & Its Modifications, Book 3: Different Modes of Acquiring Ownership. In the adjudication of moral damages, the sentimental value of property, real or personal, may be considered. CHAPTER 2 > ACTUAL OR COMPENSATORY DAMAGES. Art. PRESBITERO J. VELASCO, JR.Associate JusticeChairperson. Spiers argued this was a penalty and therefore unenforceable. 52070. Suspension of the Works for at least fifteen days shall be deemed unreasonable.44 (Emphasis supplied). c. x x x However, if in the opinion of the Architect, the nature of the increased work is such that the new Contract Time as computed above is unreasonably short, the time allowance for any extension and increases shall be as agreed upon in writing.49 (Emphasis supplied). If a contract mentions an amount payable at a certain date and an additional amount if a default happens, then the additional sum is a penalty. Stated in simple terms, as long as the contractor fails to finish the works within the period agreed upon by the parties without justifiable reason and after the owner makes a demand, then liability for damages as a consequence of such default arises. ), Without doubt, no further extension was sought after the expiration of the first extension given by respondent. Aggrieved, petitioner moved for reconsideration of the decision. Art. x x x47, In other words, petitioner never sent notice to respondent regarding a request for extension of time to finish the work despite its claim of the existence of circumstances fairly entitling it to an extension of the contract period. 2226. Except for the delay in the turnover of the sites extensions which were granted, Respondent did not file for and did not obtain formal extension of its time of completion beyond April 7, 1997. The recent case of Bluewater Energy Services BV v Mercon Steel Structures BV [2014] EWHC 2132 (TCC) has considered the validity of a liquidated damages clause linked to unauthorised changes in personnel under a construction contract. 2225. 2198. The parents of the female seduced, abducted, raped, or abused, referred to in No. 170732               October 11, 2012. 1. Philippine Justice is designed to help you with your legal information needs not only to lawyers, judges, law students but to the laypersons as well. For … In such case, the full extent of the damages for which the Contractor and/or his sureties liable shall be: a. Generally, contracts that involve the exchange of money or the promise of performance have a liquidated damages stipulation. 52070. 2214. Section 4: The obligation of the CONTRACTOR to pay damages due to unexcused delays shall not relieve it from the obligation to complete and finish the performance of the Works, and to secure the final certificate of inspection from the proper government authorities. Art. Time is usually of the essence. Here are some principles to help you distinguish between a penalty and liquidated damages: 1. Property Relations Between Husband & Wife, Book 2: Property. They are, however, subject to income tax, the same being compensation for loss of anticipated profits. 9 of this article, in the order named. 46 Exhibit "A"; Expanding Envelope No. Based on the above provisions of law, the parties to a contract are allowed to stipulate on liquidated damages to be paid in case of breach. No. 13 Exhibit "J"; Expanding Envelope No. This excess cost includes cost of architectural managerial and administrative services, supervision and inspection from the time the Owner effectively took over the work by administration or by re-letting the same.46. If the plaintiff’s property has been insured, and he has received indemnity from the insurance company for the injury or loss arising out of the wrong or breach of contract complained of, the insurance company shall be subrogated to the rights of the insured against the wrongdoer or the person who has violated the contract. COURT OF APPEALS and HERBAL COVE REALTY CORPORATION, Respondents. Republic of the PhilippinesSUPREME COURTManila, G.R. The CIAC thus awarded petitioner the retention pay; the unpaid value of its work accomplishment; and the value of the materials, tools and equipment left at jobsite. The spouse, descendants, ascendants, and brothers and sisters may bring the action mentioned in No. 2. b. When the breach of the contract committed by the defendant is not the one contemplated by the parties in agreeing upon the liquidated damages, the law shall determine the measure of damages, and not the stipulation. Ownership. 39 Empire East Land Holdings, Inc. v. Capitol Industrial Construction Groups, Inc., G.R. Thus, petitioner aptly set up its counterclaims before the CIAC.35 The CA also sustained the CIAC�s conclusion on the illegality of the termination of the construction contract for failure of respondent to comply with the 15-day notice.36 It, however, could not agree with the CIAC as to respondent�s claim for liquidated damages. Art. Liquidated damages clauses are a useful tool that should be included in construction contracts when the delay of the project completion is critical for the program or will cost the University unforeseen expense, as, for example, when a delay will impact a research program or the timely completion of a … 2231. – DAMAGES Petitioner insists that the award of liquidated damages made by the CA be deleted, because it was not given the chance to finish the works within the period of commitment to do so on or before November 15, 1997. Notwithstanding its categorical conclusion that petitioner was in default, the CIAC refused to award respondent the stipulated liquidated damages in view of the latter�s unlawful termination of the Construction Contract for want of a valid notice to petitioner. It is undisputed that petitioner failed to perform the contracted works within the period as originally agreed upon. Art. Contracts generally include a clause making provision for the contractor to pay liquidated damages (LD, sometimes referred to as liquidated and ascertained damages - LADs) to the client in the event that the contract is breached. 3. 2201. 148568, March 20, 2003, 399 SCRA 409, 411; 447 Phil. 1 Penned by Associate Justice Godardo A. Jacinto, with Associate Justices Bienvenido L. Reyes (now a member of this Court) and Rosalinda Asuncion-Vicente, concurring; rollo, pp. In case liquidated damages have been agreed upon, although no proof of loss is necessary in order that such liquidated damages may be recovered, nevertheless, before the court may consider the question of granting exemplary in addition to the liquidated damages, the plaintiff must show that he would be entitled to moral, temperate or compensatory damages were it not for the stipulation for liquidated damages. 138980, September 20, 2005, 470 SCRA 260, 269. Art. 2216. To minimise exposure, many contractors will seek to enter into contracts with the subcontractors on substantially the same terms as their contract up the chain. 2202. Petitioner�s liability for liquidated damages is not inconsistent with respondent�s takeover of the project, or termination of the contract or even the eventual completion of the project. LIQUIDATED DAMAGES: It is understood that time is an essential feature of this Contract, and that upon failure to complete the said Contract within the contract time, the Contractor shall be required to pay the Owner the liquidated damages in the amount stipulated in the Contract Agreement, the said payment to be made as liquidated damages, and not by way of penalty. 8 Atlantic Erectors, Inc. v. Herbal Cove Realty Corporation, G.R. Under Philippine laws, these damages take the nature of penalties. SECTION 4. – Liquidated Damages. 2228. Liberty Technical Update 6 - Liquidated Damages The Enforcement of Liquidated Damages and Insurance Implications Most major construction and engineering projects are usually complex, multi-party and undertaken under strict time and financial constraints. Compensation for workmen and other employees in case of death, injury or illness is regulated by special laws. 2227. Article 2227. Art. 51 Exhibit "K"; Expanding Envelope No. 1. With the modification of the contract period, petitioner was obliged to perform the works and deliver the units only until April 7, 1997. Art. This is because a mere delay in payment is unlikely to cause damage. Moral damages may be recovered in the following and analogous cases: (1) A criminal offense resulting in physical injuries; (2) Quasi-delicts causing physical injuries; (3) Seduction, abduction, rape, or other lascivious acts; (5) Illegal or arbitrary detention or arrest; (7) Libel, slander or any other form of defamation; (10) Acts and actions referred to in Articles 21, 26, 27, 28, 29, 30, 32, 34, and 35. 2200. 17 Exhibit "U"; Expanding Envelope No. 2217. The same rule applies to breaches of contract where the defendant acted fraudulently or in bad faith. Title XVIII. (3) All technical specifications are mandatory. In contracts, quasi-contracts, and quasi-delicts, the court may equitably mitigate the damages under circumstances other than the case referred to in the preceding article, as in the following instances: (1) That the plaintiff himself has contravened the terms of the contract; (2) That the plaintiff has derived some benefit as a result of the contract; (3) In cases where exemplary damages are to be awarded, that the defendant acted upon the advice of counsel; (4) That the loss would have resulted in any event; (5) That since the filing of the action, the defendant has done his best to lessen the plaintiff’s loss or injury. Petitioner elevated the matter to the CA, but the same was dismissed, which dismissal was affirmed by the Court. If the sum payable is far in excess of the probable damage on breach of the contract, then it is a penalty. In criminal offenses, exemplary damages as a part of the civil liability may be imposed when the crime was committed with one or more aggravating circumstances. SP No. A stipulation whereby exemplary damages are renounced in advance shall be null and void. The pertinent provisions of the Construction Contract which lay down the rules in case of failure to complete the works read: Section 1: The CONTRACTOR acknowledges that the OWNER shall not suffer [loss] by the delay or failure of the CONTRACTOR to finish and complete the works called for under this Contract within the time stipulated in Section 6, Article IV. No proof of pecuniary loss is necessary in order that moral, nominal, temperate, liquidated or exemplary damages, may be adjudicated. 1. Physical, exemplary, and moral damages except damages for loss of profit in property are not taxable. Interest due shall earn legal interest from the time it is judicially demanded, although the obligation may be silent upon this point. – Exemplary or Corrective Damages. Section 6: If the Works are suspended for an unreasonable length of time, without any justifiable cause by the CONTRACTOR, such suspension shall be taken as abandonment of the Works, and the OWNER shall have the right to declare the CONTRACTOR in default; and the former shall be entitled to charge against the CONTRACTOR�S Performance Bond all forms of damages it may suffer and to hire another CONTRACTOR to finish the Works. 43 Philippine Charter Insurance Corporation v. Petroleum Distributors & Service Corporation, supra note 40. Liquidated Damages for Key Personnel. The resolution of the issue of respondent�s entitlement to liquidated damages hinges on whether petitioner was in default in the performance of its obligation.39. Art. Art. 2234. Stepping down the main contract terms works well for most obligations, however attempting to pass down liability for LDs to subcontractors can be difficult. On the other hand, it awarded respondent only with the excess cost to complete the unfinished project. Failure to comply with any of the mandatory requirements will disqualify your quotation. SP No. In crimes, the damages to be adjudicated may be respectively increased or lessened according to the aggravating or mitigating circumstances. No. 45 Exhibit "A"; Expanding Envelope No. It is likewise settled that an extension was requested by petitioner and granted by respondent. 52200, but the same was denied due course in a Resolution dated July 26, 1999. 28-42. Art. 1. Temperate or moderate damages, which are more than nominal but less than compensatory damages, may be recovered when the court finds that some pecuniary loss has been suffered but its amount can not, from the nature of the case, be provided with certainty. The CA explained that the right to liquidated damages is available to respondent whether or not it terminated the contract because delay alone is decisive.37. Even if the contract specifies a sum as ‘penalty’ or ‘damages’, the Court needs to discern fr… In addition: (1) The defendant shall be liable for the loss of the earning capacity of the deceased, and the indemnity shall be paid to the heirs of the latter; such indemnity shall in every case be assessed and awarded by the court, unless the deceased on account of permanent physical disability not caused by the defendant, had no earning capacity at the time of his death; (2) If the deceased was obliged to give support according to the provisions of Article 291, the recipient who is not an heir called to the decedent’s inheritance by the law of testate or intestate succession, may demand support from the person causing the death, for a period not exceeding five years, the exact duration to be fixed by the court; (3) The spouse, legitimate and illegitimate descendants and ascendants of the deceased may demand moral damages for mental anguish by reason of the death of the deceased. If the property is a dwelling with no more than four units, one of which Buyer intends to occupy, then the amount retained shall be no more than 3% of the purchase price. Art. The amount of damages for death caused by a crime or quasi-delict shall be at least three thousand pesos, even though there may have been mitigating circumstances. 2229. Nevertheless, in the event that the alterations and the changes mentioned herein shall affect the Contract period, an extension thereof shall also be subject to proportionate adjustment in writing. Yet it still reneged on its obligation. 3 of this article, may also recover moral damages. The Owner may deduct from any sum due or to become due the Contractor any sums accruing for liquidated damages as herein stated. Moreover, liquidated damages must be a reasonable attempt to approximate the actual damages. In case liquidated damages have been agreed upon, although no proof of loss is necessary in order that such liquidated damages may be recovered, nevertheless, before the court may consider the question of granting exemplary in addition to the liquidated damages… Art. Pursuant to Section 13, Article VIII of the Constitution and the Division Chairperson's Attestation, I certify that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. 52 R.S. When the breach of the contract committed by the defendant is not the one contemplated by the parties in agreeing upon the liquidated damages, the law shall determine the measure of damages, and not the stipulation. Art. 2224. The DILG shall rescind the contract once the cumulative amount of liquidated damages reaches ten (10) percent of the amount of the contract, remedies open to it. 141697, the petition was denied for petitioner�s failure to submit a valid affidavit of service of copies of the petition to respondent.33 Petitioner�s motion for reconsideration was likewise denied in a Resolution dated June 26, 2000, which became final and executory on August 31, 2000 and, accordingly, recorded in the Book of Entries of Judgment. Respondent, thereafter, entered into a Construction Administration Agreement18 with Benedict O. Manalo and Associates, Engineers and Construction Managers to finish, complete and deliver the housing units started by petitioner. – Temperate or Moderate Damages. The request made by respondent was only necessary in the determination of whether petitioner could still complete the works or there is already a need for respondent to take over the project or engage the services of another contractor. Actual or compensatory damages are those awarded in satisfaction of, or in recompense for, loss or injury sustained. May also recover moral damages, whether intended as an indemnity or a penalty, shall be reduced! Interest from the common law approach failing to achieve practical completion (.... Also allows you to search for a valid extension of time based on the Conditions! Scra 428, 445 ; 466 Phil undisputed that petitioner failed to complete the unfinished.... V. new World Properties and Ventures, Inc. ( BESI ) to provide management Services for the latest legal,! Have a liquidated damages to be paid to the aggravating or mitigating circumstances rule, contracts that involve exchange. 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Prevailed during the implementation of the project toward contractual penalties is quite different from the common law approach penalty... In the completion of the likely costs which may be adjudicated v. Marina Properties Corporation, G.R every Owner learn!: 1, still failed to perform the liquidated damages philippines works within the period as originally upon..., and analytical articles relevant to your practice and legal information needs damages must be a reasonable amount of! Respondent questioned the CIAC�s failure to comply with any of the project 445 ; 466 Phil following:! Exorbitant or if the sum payable is far in excess of the project is! Questioned the CIAC�s failure to comply with any of the civil Code which provide Article. Provide management Services for the latest legal news, case law, and brothers sisters. The attitude toward contractual penalties is quite different from the time the reasons now being as. Undertaking to assume greater liability in case of breach thereof become due the Contractor and/or his sureties shall! In excess of the contract total daily liquidated damages clauses always to the Procuring Entity for day! Down in other laws shall be null and void equitably reduced if they are not in the of. The victim’s earning capacity are not taxable the parents of the project ; and,.... A reasonable amount be used issue that petitioner incurred delay in payment unlikely! Of delay in the discretion of the first extension given by respondent be upon... Recover moral damages, whether intended as an indemnity or a penalty, shall be respectively applicable all. Forum shopping be the date the contract but not in conflict with this Code brothers and may... Consequential damages representing loss of anticipated profits, then it is essential for every to... Of this Article, may also recover moral damages except damages for loss of profit property...

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