are liquidated damages exclusive remedy
The contractor will almost always ask for the liquidated damages to be an exclusive remedy. A common formulation for the clause would be that the liquidated damages are an exclusive remedy for the power stationâs failure to perform.
Assuming liquidated damages are unenforceable because they are a penalty, the relevant party will ordinarily be entitled to general damages for breach. A clause that made liquated damages the partyâs exclusive remedy would prevent any claim for general damages. To avoid this outcome, when combining a liquated damages and exclusive remedy clause, the exclusive remedies should be liquidated damages or general damages should the liquidated damages be unenforceable.