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Lexiel/Glossary/Penalty clause / Liquidated damages
Legal definition
General

Penalty clause / Liquidated damages

Contractual stipulation fixing in advance the compensation payable for breach. Replaces ordinary damages unless otherwise agreed. Courts may reduce the penalty when it is manifestly disproportionate to the harm suffered (Art. 1154 CC).

Arts. 1152-1155 CC
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Penalty clause / Liquidated damages: Legal definition | Lexiel Glossary