Inadequacy of Damages Clause

This Inadequacy of Damages Clause is designed to emphasise that damages alone would not be an adequate remedy for breach of a contract by a particular party. This may apply, for example, in situations where monetary compensation would not remedy the damage suffered by the aggrieved party. In the event of a breach, the clause sets out the other remedies, such as specific performance, available to that party.

Despite setting such remedies out, however, a clause of this kind will not necessarily guarantee that a court will grant them; it is instead designed to be persuasive.

This template clause can be used in the drafting of a new contract or to amend or improve an existing one.

Optional text is enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.

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