Upgrad LLM

liquidated damages v/s termination of contract


Dear Colleagues, in the large construction contracts / infra contracts, there is always a clause of Liquidated Damages. Sometimes in that clause it is written that "Termination is independent of LD". The concern is that while the customer writes that, it is very risky and unimaginable that the customer will terminate such contract when the delay is just few weeks. After all it is an infra contract where the contractor also plugs in huge investment. Yet, theoritically, the customer can do it My question - if the customer tries to terminate the contract on a delay of (lets say) just 10 days - then can the contractor challenge this decision in the court of law with the argument that it is unreasonable, specially because the contractor is ready to pay liquidated damages? Can the court put an injunction on such potential termination?
 
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