Abstract

The question, which is considered in this article, concerns a maximum amount of liquidated damages as a prerequisite for their validity. This question has been raised in two cases which are being examined by the Supreme Court. In this article we present arguments supporting the interpretation of Art. 483 § 1 of the Polish Civil Code that at least a maximum amount of liquidated damages must be known by a debtor as at the date when they approve the liquidated damages clause. Even if a final amount of liquidated damages in a given case is dependent on a future delay by the debtor – unknown at the time of concluding the contract – the maximum amount must be determined. Otherwise, in our opinion, the liquidated damages clause can be questioned in light of Art. 483 § 1 of the Polish Civil Code.