Is a penalty clause for delayed work enforceable in a Liechtenstein service contract?

Yes, a penalty clause for delayed work is generally enforceable under Liechtenstein law, provided it is clearly agreed in the contract. It represents a fixed, pre-determined amount of compensation and may be due even if no actual damage has occurred. The client (you) must prove that a delay took place, while the contractor bears the burden of showing that they were not at fault.

However, every penalty clause is subject to judicial moderation. Upon the contractor’s request, a court may reduce the penalty if it appears excessive in light of the contractor’s fault or the actual loss suffered. Any advance waiver of this moderation right is invalid.

Liability caps are also generally valid, as long as they do not exclude liability for intentional or grossly negligent conduct. If the contractor fails to meet agreed deadlines, you may e.g. claim the contractual penalty, set an additional grace period, withdraw from the contract, or seek damages in accordance with general contract law (each depending on the specific case).

We are happy to review your service agreement to provide you with a detailed assessment to your specific case. 

Yes, a penalty clause for delayed work is generally enforceable under Liechtenstein law, provided it is clearly agreed in the contract. It represents a fixed, pre-determined amount of compensation and may be due even if no actual damage has occurred. The client (you) must prove that a delay took place, while the contractor bears the burden of showing that they were not at fault.

However, every penalty clause is subject to judicial moderation. Upon the contractor’s request, a court may reduce the penalty if it appears excessive in light of the contractor’s fault or the actual loss suffered. Any advance waiver of this moderation right is invalid.

Liability caps are also generally valid, as long as they do not exclude liability for intentional or grossly negligent conduct. If the contractor fails to meet agreed deadlines, you may e.g. claim the contractual penalty, set an additional grace period, withdraw from the contract, or seek damages in accordance with general contract law (each depending on the specific case).

We are happy to review your service agreement to provide you with a detailed assessment to your specific case.