I signed a penalty clause that cost me $1,800 in one month

My service contract had a liquidated damages term for late deliveries, and I figured it was just boilerplate until a supplier delay hit me with the full amount. That number was more than my profit margin on the whole job, so now I always cap those clauses at 10% of the invoice. Anyone else ever get burned by a penalty that seemed harmless on paper?

1 comments

1 Comment

gray31418d agoMost Upvoted

Damn, that hurts. These clauses are brutal.