Penalty Clause

Penalty Clause

Tags: agreement, billijkheid, boete, boetebeding, commitment, compliance, contract, fairness, fine, matigen, moderate, nakoming, overeenkomst, penalty clause, reasonableness, redelijkheid, tekortschieten, verbintenis.

A penalty clause is a provision in which it is stipulated that if a party fails to fulfil its obligations, a penalty is due.

Moderation of the Fine

Pursuant to Section 6:94 of the Dutch Civil Code, the judge can moderate the fine due on the basis of the penalty clause if the debtor requests it and equity demands it.

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