Author

Roze Nn Phang

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On November 21, 2018, the Malaysian Federal Court overturned a well-established decision on the effectiveness and enforceability of liquidated damages clauses in contracts.[1] Before this decision, the previous position had left many questioning the effectiveness of incorporating a liquidated damages clauses in their contracts. BACKGROUND The fundamental purpose of a liquidated damages clause is to enable the parties to negotiate and agree in their contract on the compensation payable for non-performance of contractual obligations. Section…