Position of Liquidated Damages: as a Remedy for Breach of Public Construction Contract in Ethiopia : The Law and Practice
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Liquidated damages is a fixed sum agreed by the parties in their contract as a value of the damages that one party can claim against the other, without the need to prove that sustained damage when they enter into contract. But, whether a liquidated damages is a contractual or legal remedy; whether a liquidated damages and penalty are similar and interchangeable or different in concept; can an employer seeks liquidation damages together with other available general remedies after canceling such contract; and who, contracting parties or a government, in agreement or by law, can figure out amount of liquidated damages and its calculation mechanism are unsolved conundrum in Ethiopian pertaining laws and its application in courts thereof.
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