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What is a Penalty?
For Example: Any delay with the delivery of an industrial plant causes considerable damage to the customer. Therefore, the contractor often is obliged to pay a penalty for each day he is late in the delivery of it.
What are limitations of liability?
Limitations set in the contract to exclude any unappropriate damages
simple negligence (of an employer)
loss of profit
Personal injuries cannot be excluded. Breach of warranty, termination, reduction of price, claim for remedy of a defect or the contract cannot be covered