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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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