Liquidated damages are defined as damages that are designated by parties when a contract is being formulated; these damages are to be paid to the party injured as compensation for the breach of the contract ( Moss & Schmitz, 2002) . The case between the California and Hawaiian Sugar Corporation V Sun Ship Inc. demonstrates breach of a contract.
The plaintiff in this case is the California and Hawaiian Sugar Corporation while the defendant is the Sun Ship Inc. from Pennsylvania Corporation the latter hired Sun Ship to construct for them a barge and a tug which was to be constructed by the Halter to aid in ferrying sugar canes to their factories. The contract stated that Halter would deliver the tag after it completion to Sun Ship by April 30 th 1981. While Sun Ship was supposed complete and deliver the barge by June 30 th 1981. The contract further stated that failure of the Sun Ship to honor the contract conditions. They would pay damages of $17,000 to C & H on the basis of per day liquidated damages rather than a penalty. Halter did not hit the deadline as stated by the contract, and delivered the tug in July 15 1982, and paid $10,000 as damages ( Threedy, 1990) . C & H solved their claims against the Halter. After the tug was delivered Sun Ship Inc was also late, and paid the damages of $17000 daily as specified by the contract from June 30, 1981 until January 10, 1982 . Sun Ship denied the liability for the damages. Sun Ship claimed that the late delivery of the tug by Halter caused them inconveniences which resulted to late delivery of the tug and barge. The court ruled in favor of C & H, stating that the liquidated damages are not penalty which makes them enforceable ( Schubert & Fiorelli, 1993) .
Delegate your assignment to our experts and they will do the rest.
References
Moss, C. B., & Schmitz, A. (2002). Vertical integration and trade policy: The case of sugar. Agribusiness , 18 (1), 49-60.
Threedy, D. L. (1990). Liquidated and Limited Damages and the Revision of Article 2: An Opportunity to Rethink the UCC's Treatment of Agreed Remedies. Idaho L. Rev. , 27 , 427.
Schubert, R. W., & Fiorelli, P. E. (1993,). Liquidated Damages: An Approach to Addressing Performance Breaches in Contracts. In ASME 1993 International Gas Turbine and Aeroengine Congress and Exposition (pp. V03CT17A056-V03CT17A056). American Society of Mechanical Engineers.
