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Contract Penalty Provisions and Clauses

Liquidated damage clauses in contracts are enforceable, while penalty clauses are not. Paragon Group, Inc. v. Ampleman, 878 S.W.2d 878, 880 (Mo. Ct. App. 1994). The reason for this is that the policy behind remedies in the event of a breach of contract is to effect compensation, not a penalty. Luna v. Smith, 861 S.W.2d […]

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Contracts: Liquidated Damages, Penalty Clauses

In a breach of contract action, the plaintiff must prove that the other side not only breached the contract, but also that plaintiff was harmed as a result of the breach. The burden of proving that damages exist and the amount of those damages rests with the plaintiff. Ullrich v. CADCO, Inc., 244 S.W.3d 772, 779 […]

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Prejudgment Interest: Liquidated Claims, Tort Claims

After a Judgment is obtained against a Defendant in Missouri, 9% interest per annum generally accrues on the Judgment (tort cases have a different interest rate). Is there a situation in which the interest can be retroactive before the Judgment was entered? Yes, pursuant to the Missouri prejudgment interest statutes. Under Section 408.020, prejudgment on liquidated claims […]

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