If someone breaches the terms and conditions of my service, can I insert a clause that would allow me to fine/sue the user for a fixed fee?

Raad Ahmed

After the fact won’t hold water, but if you insert the clause from the start (or for future users) then yeah, that’s pretty typical and could protect you in a lot of ways.

However, keep in mind that liquidated damages clause (which is what we are talking about here) can have it’s advantages, but courts won’t always enforce them. This usually happens if the amount of damages are disproportionate to the harm suffered. In that case, the court will view this as a punishment and won’t enforce the clause.

Likewise, courts are more likely to enforce the provision if it’s difficult to determine the damages at the time the contract was signed. You’ll want to check with your state’s laws about liquidated damages as this may offer some more insight into what you could expect as far as court enforcement.

If you need some help understanding this type of contract or would like assistance with drafting one, check out LawTrades . We can put you in touch with a qualified contract attorney that can help you with the finer details. Take a look at our website and let us know if there’s any way that we can help.

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