1. Exemplary or corrective damages are intended to serve as a deterrent to serious wrongdoings. Actual or compensatory damages are those awarded in satisfaction of, or in recompense for, loss or injury sustained. I attest that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion or the Court's Division. No. No proof of pecuniary loss is necessary. COuNTRIEs REpREsENTEd australia • 4 Bangladesh • 6 China • 8 hong Kong • 10 india • 12 indonesia • 14 Japan • 16 Korea • 18 maCau • 20 The total amount of liquidated damages shall not exceed ten percent (10%) of the amount of the contract. That the crime was committed with 1 or more aggravating circumstances, or the quasi-­‐delict was committed with gross negligence, or in contracts and quasi-contracts the act must be accompanied by bad faith or done in wanton, fraudulent, oppressive or malevolent manner. Actual or compensatory damages simply make good or replace the loss caused by the wrong. Based on the above provisions of law, the parties to a contract are allowed to stipulate on liquidated damages to be paid in case of breach. Such is only relevant in the exercise of respondent’s right to terminate the contract but not in the entitlement to liquidated damages. Liquidated damages are subject to income tax, the same being compensation for the loss of anticipated profits. 143154, June 21, 2006, 491 SCRA 557, 579-580. liquidated damages akin to penalty and provided that there is a contractual obligation on the part of the company to pay for the liquidated damages as soon as there is a delay in the supply of goods beyond the due date as per the delivery schedule. Additional extension was requested due to bad weather condition that prevailed during the implementation of the projects, again causing excusable delay. Liquidated damages are specified daily charges deducted from moneys otherwise payable to the contractor for each day the contractor fails to meet a milestone and/or contract completion date. Should the contractor be obstructed or delayed in the prosecution or completion of the work x x x then the contractor shall within fifteen (15) days from the occurrence of such delay file the necessary request for extension. 45 Exhibit "A"; Expanding Envelope No. 9 Exhibit "H"; Expanding Envelope No. The liability for liquidated damages is governed by Articles 2226-2228 of the Civil Code which provide: Article 2226. 16 Exhibit "T"; Expanding Envelope No. Petitioner was allowed to complete and deliver the housing units until the following dates: SDA-15 15 March 1997 or an extension of 67 calendar days, TH 16-A and TH 16-B 7 March 1997 or an extension of 59 calendar days, TH 17-A and TH 17-B 7 April 1997 or an extension of 90 calendar days15. 52 R.S. No. Proof that a legal right has been violated is what is only required. Liquidated damages are damages that are included in a contract to compensate for a potential breach of the contract. It is undisputed that petitioner failed to perform the contracted works within the period as originally agreed upon. Another way of looking at liquidated damages, is that it is the price the contractor must pay per day for working beyond the required completion dates. Liquidated damages are those agreed upon by the parties to a contract, to be paid in case of breach thereof. 1. Mobile Globe: +63 (915) 954-6080Mobile Smart: +63 (949) 589-8377 Landline: (632) 359-4203, 2nd Floor LC Building, 31 Gen. Luna St., Tuktukan 1632 Taguig City, Philippines, © 2020 BATASnatin - Filipino's Comprehensive Online Law Resource and Community. 2228. Section 4, Article IX of the Construction Contract states: Moreover, Article 21.05 of the General Conditions amplifies petitioner’s liability for damages, to wit: 21.05. 52070. Free legal advice visit BATASnatin YouTube for more details! The total daily liquidated damages up to and including the day immediately before the date the Owner effectively takes over the work. In answer to respondent’s request for arbitration, petitioner alleged that the delay was attributable to: (1) delayed turnover of the site; (2) cause of two typhoons; 3) change orders and additional works; (4) late approval of shop drawings; (5) non-arrival of chimney expert; (6) delayed payments; and (7) non-payment of the last two billings.22 It also argued that respondent suspended the construction works depriving it of the opportunity to complete the works on or before November 15, 1997.23 It also insisted that there was unlawful termination of the construction contract. 17 Exhibit "U"; Expanding Envelope No. 43 Philippine Charter Insurance Corporation v. Petroleum Distributors & Service Corporation, supra note 40. In this case, petitioner bound itself to complete the projects within 120 days from December 29, 1990. 168074, September 26, 2008, 566 SCRA 473. In such case, the full extent of the damages for which the Contractor and/or his sureties liable shall be: a. 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