Calculation, Pyramiding Clause Samples

The "Calculation, Pyramiding" clause defines how multiple penalties, damages, or remedies are calculated when more than one may apply to the same event or breach. Typically, this clause clarifies that penalties or remedies should not be "pyramided"—that is, stacked or multiplied—so that a party does not recover more than once for the same loss or violation. For example, if a contract breach triggers both a liquidated damages provision and a penalty, this clause may specify that only the greater of the two applies, not both. Its core function is to prevent double recovery and ensure fairness by avoiding excessive or overlapping financial consequences for a single incident.