Penalty clause in economics and finance

257 views Feb 7, 2024

Hello everyone! Welcome to today's lesson on penalty clauses in economics and finance. A penalty clause, also known as a liquidated damages clause, is a provision in a contract that outlines the predetermined amount of compensation that one party must pay to the other in the event of a breach. It serves as a deterrent against non-compliance and provides a measure of security to the aggrieved party.

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