It is not the same thing.
In the speeding example or with any law, the idea is both that the offender had damaged society and a fine will condition the offender to refrain from breaking the law again. The back charge cannot do more than recover funds that were paid in error. IF they exceed the payment the charges produce revenue the client has no right to expect.
Penalty clauses are built into contracts to compensate the contracting party for lost revenue because they are paying for services on a specific schedule and at a specific place. The absence of the goods or services at the contracted time and place produces a loss that is to be corrected contractually.
Not the same thing.
Joe
Re: mastec
Member #: 66409
Registered: 2/26/2009
Posted:
991
Name:
joe diamond
Name:
Joe Diamond
Company:
phone & dtv contractor
Occupation:
installer
Location:
east MD
Personal:
late 70s
Experience:
~32 years
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