Reasonableness of Liquidated Charges and Fees Sample Clauses
The Reasonableness of Liquidated Charges and Fees clause establishes that any predetermined charges or fees specified in the contract, such as penalties for late payment or early termination, must be fair and proportionate to the actual harm or costs incurred. In practice, this means that the parties agree not to set excessive or punitive amounts for these charges, and such fees should reflect a genuine pre-estimate of potential losses. The core function of this clause is to ensure that liquidated damages are enforceable and not subject to being struck down as penalties, thereby providing predictability and fairness in the event of a breach.
Reasonableness of Liquidated Charges and Fees. The parties agree that the Additional Fees payable under this Master License represent a fair and reasonable estimate of the administrative costs that the City will incur in connection with the matters for which they are imposed and that the City’s right to impose the Additional Fees is in addition to and not in lieu of its other rights under this Master License. More specifically: THE PARTIES ACKNOWLEDGE AND AGREE THAT THE CITY’S ACTUAL ADMINISTRATIVE COSTS AND OTHER DETRIMENT ARISING FROM LICENSEE DEFAULTS AND OTHER ADMINISTRATIVE MATTERS UNDER THIS MASTER LICENSE WOULD BE EXTREMELY DIFFICULT OR IMPRACTICABLE TO DETERMINE. BY PLACING HIS OR HER INITIALS BELOW, AN AUTHORIZED REPRESENTATIVE OF EACH PARTY ACKNOWLEDGES THAT THE PARTIES HAVE AGREED, AFTER NEGOTIATION, ON THE AMOUNT OF THE ADDITIONAL FEES AS REASONABLE ESTIMATES OF THE CITY’S ADDITIONAL ADMINISTRATIVE COSTS AND OTHER DETRIMENT. Initials: Licensee City