Doubtful security note in Contractor Agreement?
Thread poster: Jakub Filipek

Jakub Filipek
Local time: 13:00
Polish to English
+ ...
Nov 18, 2011


I found something like this in one agreement and this looks suspicious to
me. I am grateful if you can give me some feedback on this.

"11. LIQUIDATED DAMAGE AND COST OF LITIGATION. The parties agree that damages may be difficult to determine and that monetary damages may be an insufficient remedy for the COMPANY. Accordingly, the parties agree that this Agreement may be enforced through legal suit and judgment requiring specific performance of the Agreement’s terms including and injunctive order or judgment, in addition to any other remedy available at law or in equity. COMPANY shall be entitled to additional damages to include all attorneys’ fees, expenditures, disbursements and cost incurred in enforcing this Agreement, whether litigation is or is not necessary. Because monetary damages are difficult to determine, the parties hereby agree that a reasonable monetary damage (in addition to injunctive relief and cost of enforcement), is the amount equal to the highest monthly amount paid to the CONTRACTOR prior to the breach of this Agreement multiplied by thirty-six (36) months.


Miranda Drew  Identity Verified
Local time: 13:00
Italian to English
I would not sign Nov 18, 2011

I definitely would not sign something like this.


Terry Richards
Local time: 13:00
French to English
+ ...
Me neither Nov 18, 2011

No way would I sign this. In fact, I would have serious second thoughts about working for these people even if they strike the clause.


Ines Burrell  Identity Verified
United Kingdom
Local time: 12:00
Member (2004)
English to Latvian
+ ...
A definite no Nov 18, 2011

You could always ask them, if they would like the deed of your house as well.

I would never sign this.


The Misha
Local time: 07:00
Russian to English
+ ...
Even though no one in the right mind Nov 18, 2011

will bother suing an individual translator (an agency or translation company, maybe, but still unlikely), this is still a bunch of bologna. Under no circumstances should your liability exceed the amount of money paid or due you for the particular job. Tell these jokers to take a hike, and tell them why.


Jean Lachaud  Identity Verified
United States
Local time: 07:00
English to French
+ ...
Why accept? Nov 18, 2011

Why would anyone even think of agreeing to that?


Jakub Filipek
Local time: 13:00
Polish to English
+ ...
Thanks Nov 18, 2011

Thank you everybodyicon_smile.gif

That's exactly how I felt about it, nonetheless it was good to have
more opinions on this one.


John Fossey  Identity Verified
Local time: 05:00
Member (2008)
French to English
Limiting liability Nov 18, 2011

The Misha wrote:

Under no circumstances should your liability exceed the amount of money paid or due you for the particular job.

Exactly, and very important. In fact, I was once pointed to this by my insurance agent, that without such a clause you are leaving yourself open to infinite liabilities. I have had one or two companies insist on such a clause and walked away.

The damages are not "difficult to determine" - they stop at the amount paid for the job.

"reasonable monetary damage" - I haven't heard that one before! So the calculation "highest monthly amount paid" "multiplied by thirty six (36) months" "whether litigation is or is not necessary" is reasonable? Just pay it...


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Doubtful security note in Contractor Agreement?

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