Connecticut Seal

General Assembly

 

Committee Bill No. 6897

January Session, 2007

 

LCO No. 4984

 

*04984HB06897JUD*

Referred to Committee on Judiciary

 

Introduced by:

 

(JUD)

 

AN ACT CONCERNING LIQUIDATED DAMAGES PROVISIONS IN CONTRACTS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective October 1, 2007) No provision in a contract providing for the payment of liquidated damages in the event of a breach of the contract shall be valid or enforceable unless (1) the contract contains a statement immediately following such liquidated damages provision that states "I have read this LIQUIDATED DAMAGES provision and I understand the meaning of it", and (2) the person against whom such provision is to be enforced signs such person's name or writes such person's initials next to such statement.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2007

New section

Statement of Purpose:

To ensure that a person who enters into a contract that contains a liquidated damages provision understands that provision.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]

Co-Sponsors:

REP. TABORSAK, 109th Dist.; REP. GODFREY, 110th Dist.

H.B. 6897