Letter for Imposing Liquidated Damages Due to Delay – Sample Letter Regarding Liquidated Damages

When writing a letter regarding liquidated damages due to delay, it's important to maintain a professional and clear tone. Clearly state the details of the purchase order, including the work completion or delivery deadline and the actual completion or delivery date. Request clarification for the delay and remind the recipient of the consequences as per the contractual agreement or purchase order terms. Provide a deadline for response and offer contact information for any queries.

Table of Contents:

• Sample Letter
• Live Editing Assistance
• How to Use Live Assistant
• Additional Template Options
• Download Options
• Share via Email
• Share via WhatsApp
• Copy to Clipboard
• Print Letter
• FAQs

Sample Letter Regarding Liquidated Damages

To,
__________ (Receiver’s Name)
__________ (Receiver’s Address)

Date: __/__/____ (Date)

Subject: Liquidated Damages

Sir/Madam,

This letter is to inform you that as per the purchase order __________ (purchase order No.) terms the work completion date/ delivery date/ deadline for executing the order was _____________ (deadline date). But the final completion/ delivery as per our records is ________________ (work completion date/ delivery date).

We request you to kindly specify the reason for the delay in work completion/ delivery, else as per the contractual agreement/ PO Terms, LD charges will be applicable and the same shall be deducted from your final payment.

We request to revert by ___________ (deadline date for reply), else we shall proceed with the deduction.

In case of any query contact at _____________ (contact number)

Regards,
___________ (Your Name)
___________ (Designation)

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FAQs

• What are liquidated damages in a business context?
  • Liquidated damages are predetermined damages established in a contract to compensate for delays or breaches. They serve as a measure of the anticipated loss resulting from the delay or breach.
• What should I include in a letter regarding liquidated damages for delay?
  • Clearly state the details of the purchase order, including the agreed-upon deadline and the actual completion or delivery date. Request clarification for the delay and remind the recipient of the consequences as per the contractual agreement.
• How should I phrase the deadline for response in a letter about liquidated damages?
  • Provide a specific deadline by which you expect a response from the recipient, ensuring it allows sufficient time for them to provide a satisfactory explanation.
• What if the recipient fails to respond to the letter regarding liquidated damages?
  • If the recipient fails to respond within the specified deadline, you may proceed with the deduction of liquidated damages as outlined in the contractual agreement or purchase order terms.
• Is it necessary to offer contact information in a letter about liquidated damages?
  • Yes, it's essential to provide contact information to allow the recipient to reach out with any questions or concerns they may have regarding the matter.