Assuming that the liquidated damages are unenforceable as they constitute a penalty, the party concerned is generally entitled to general damages for violation. A clause that liquated damages of the exclusive party would be to prevent any claim for general damages. Exclusive remedial clauses are a kind of exclusion clause. Therefore, the usual rules of interpretation apply. These include exclusive corrective clauses that become dangerous if trigger events have multiple causes or effects. In these situations, it can quickly be difficult to separate the causes and effects for which corrective action must be taken exclusively. The most important elements of an exclusive remedy clause are: an exclusive remedy clause duly formulated is effective and enforceable in accordance with the treaty, subject to the legal restrictions listed below. Unfortunately, this statement is not as useful as it first appears. As always, the trick is to choose the „right“ words. Some remedies cannot be excluded under the legislation. Consumer guarantees under Australia`s Consumer Protection Act are an example. As you expect, an exclusive remedy clause will not affect these remedies.

The contractor will almost always require that the liquidated damages be an exclusive remedy. A common formulation of the clause would be that the liquidated damages constitute an exclusive remedy in the event of non-performance of the plant. It would appear that this would be a reasonable claim, since the liquidated damages should represent the value of the lost production. To avoid this result, the combination of a tied-up damages clause and an exclusive remedy clause should allow for the liquidation of exclusive remedies or the elimination of general damages if the liquidated damage is not applicable. However, a performance deficit can be caused by a number of problems. The liquidated damage is intended to compensate for a fully operational power plant, but with reduced power. They do not adequately compensate the owner of a hardware or processing error that needs to be corrected or shortened the life of the plant. And yet, if scarcity has contributed to a reduction in performance, liquidated damage would probably be the only remedy. Sometimes it is necessary to remedy the situation for a party that takes certain measures or achieves a certain result. A CBE contract could, for example, stipulate that once the licensee`s failure has ended, the owner`s exclusive remedy is the difference between the contract price and the actual cost to the owner of the construction.

1.1.Exclusive remedy. The exclusive recourse of the licensee and the total liability of the donor for the violation of this agreement are limited, to the exclusive and exclusive assessment of the donor, on the following conditions: the effectiveness of an exclusive appeal clause is compromised if the agreement also contains a cumulative appeal clause. See, Contract Assistance – Cumulative corrective measures against exclusive measures. The danger lies in the type of opt-in clauses.