Question: As a contractor you have built a 100-unit apartment complex that rents for $450 per unit a month. For late completion, you were assessed $2,000

As a contractor you have built a 100-unit apartment complex that rents for $450 per unit a month. For late completion, you were assessed $2,000 per day. Would you qualify the assessment as liquidated damages or as a penalty? If the contract had included a bonus of $500 per day for early completion, would you expect to gain any assessment from court action? Why?

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ANSWER The characterization of the 2000 per day assessment for late completion and the 500 per day bonus for early completion depends on whether these ... View full answer

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