Possible examples of penalty clauses A clause that requires an employee on a monthly salary of $2,000 to pay $50 per calendar day from the date of terminating his employment until the 1-year term contract is up. G.R. The dispositive portion of the Decision reads:ChanRoblesVirtualawlibrary, Copyright © is significant because the monetary claim should be as close as possible to the real loss. No. G.R. This is the point that clearly separates penalty from liquidated damages. 208067, September 14, 2016 - PEOPLE OF THE PHILIPPINES, Appellee, v. RONNIE R. LIBRIAS, Appellant. G.R. 218891, September 19, 2016 - EDMUND BULAUITAN Y MAUAYAN,* Petitioner, v. PEOPLE OF THE PHILIPPINES, Respondent. To be enforceable, a valid liquidated damage clause must meet three criteria: actual damages are difficult to estimate at the time the contract is entered into, the sum or formula stated is calculated to compensate the injured party for its real losses, and the stated amount is a not a penalty. No. Liquidated damages, whether intended as an indemnity or a penalty, shall be equitably reduced if they are iniquitous or unconscionable. A.C. No. G.R. G.R. A.C. No. Liquidated damages, also referred to as "liquidated and ascertained damages" (LADs) are damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach (e.g. There are good reasons for this. LawSikho has created a telegram group for exchanging legal knowledge, referrals and various opportunities. G.R. 10150, September 21, 2016 - GINA E. ENDAYA, Complainant, v. ATTY. It is generally employed when the calculation of actual damages upon execution of the contract is onerous or impractical. 221047, September 14, 2016 - MICHAEL A. ONSTOTT, Petitioner, v. UPPER TAGPOS NEIGHBORHOOD ASSOCIATION, INC., Respondent. 205871, September 28, 2016 - RUEL TUANO Y HERNANDEZ, Petitioner, v. PEOPLE OF THE PHILIPPINES, Respondent. Contractual penalty awards a lump-sum compensation to the non defaulting party for damages (similarly to the liquidated damages) connected with a … 3. No. As the amount decided by the contracting parties at the time of entering into a contract will be reduced by the courts if it appears by the way of penalty, else the amount as liquidated damages is payable. G.R. 190015 & 190019, September 14, 2016 - GERALDINE MICHELLE B. FALLARME AND ANDREA MARTINEZ-GACOS, Petitioners, v. SAN JUAN DE DIOS EDUCATIONAL FOUNDATION, INC., CHONA M. HERNANDEZ, VALERIANO ALEJANDRO III, SISTER CONCEPTION GABATINO, D.C., AND SISTER JOSEFINA QUIACHON, D.C., Respondent. In addition to the right to sue, it also relieves the aggrieved party from performing his part of the contract. P-09-2621 [Formerly OCA-I.P.I. 184237, September 21, 2016 - HENRY H. TENG, Petitioner, v. LAWRENCE C. TING, EDMUND TING AND ANTHONY TING, Respondent. “73. A large factor in penalty clauses is “liquidated damages.” Liquidated damages are merely an agreement between the parties as to what damages will be assessed for late completion, so that neither party has to prove what the actual damages are (or are not). GPP engaged Prosolia to construct five solar power plants across the UK under five separate EPC contracts. G.R. Liquidated Damages or Penalty Clause. No. It is only in cases where damage or loss is difficult or impossible to prove, that liquidated amount named in the contract can be awarded, provided the same represents a genuine pre-estimate of damage or loss. 195975, September 05, 2016 - TAINA MANIGQUE-STONE, Petitioner, v. CATTLEYA LAND, INC., AND SPOUSES TROADIO B. TECSON AND ASUNCION ORTALIZ-TECSON, Respondents. 2227. GPP claimed against Solar under its guarantees. G.R. EDGARDO O. PALAY, Respondent. No. 192754, September 07, 2016 - LEONIS NAVIGATION CO., INC. AND WORLD MARINE PANAMA S.A., Petitioners, v. EDUARDO C. OBRERO AND MERCEDITA P. OBRERO, Respondents. In addition to the right to sue, it also relieves the aggrieved party from performing his part of the contract. MARGARITO ASOQUE AND TARCINIA ASOQUE, Respondents. Art. No. ; MARIA EMILY D. DAGAANG, Petitioner-Intervenor. BENEDICTO D. TABAQUERO, Respondent. Unlike penalties, the law upholds contracts that award liquidated damages. The court observed that since no loss was incurred by the Government; therefore, an award of damages for breach could not be sustained. LUISA B. CAÑEZA, LILIAN C. CANILAO, RANIEL S. CAPADA, FLORENDO A. DAYUS, JENNIFER D. PAGULAYAN, BIENVENIDO C. DE VILLA, JOSE A. DELOS REYES, CYNTHIA A. DIAZ, ANNA LEAH D. DIPATUAN, MADELAINE M. ESTOCAPIO, DR. MARIA SONIA YEE-FESTIN, MARIO E. FLORENDO, RUEL E. FORTUNADO, NATIVIDAD A. GAMIAO, IRMA Q. ANDAL, CHARITO C. LAZAM, AGNES R. LOVINDINO, EVELYN M. MABAG, RECHILDA B. MACAFE, ZENAIDA M. MADIANGKIT, ANGELICA T. MALAZARTE, DOMINGO P. MANAY, DR. EDGAR ORVEN M. MORTEL, SATURNINO E. QUIBAN, MARITES J. RAMOS, DR. MELINDA S.L.