Judicial principles and studies
Delay Penalty and Liquidated Damages in a Supply Contract and Contract Termination
A concise rule: contractual delay penalties are due only when the obligation is performed late; if there is no performance or incomplete performance, damages follow general civil-liability rules. In the cited matter the claimant’s request for the liquidated penalty was denied because she sought contract termination limited to undelivered goods.
Crime and penalties
Judicial principles and studies
Updated: 10 September 2026
Editorial summary of a judicial principle or decision; consult the source below and do not treat the firm as the author of the decision.
Smart reading summary
Understand and share the study quickly
A concise rule: contractual delay penalties are due only when the obligation is performed late; if there is no performance or incomplete performance, damages follow general civil-liability rules. In the cited matter the claimant’s request for the liquidated penalty was denied because she sought contract termination limited to undelivered goods.
Key points
- Subject
- Summary
- Practical significance
Useful for: Useful for initial reading and identifying questions that may need legal review.
This automatic summary is based on the published text. It is not legal advice and does not replace checking official sources and reviewing the facts with a qualified lawyer.
AI generation is optional and subject to Gemini usage limits. Do not send client data or attachments from this card.
Subject
Examination of entitlement to a contractual delay penalty/liquidated damages in a supply contract dispute where contract termination was sought with respect to undelivered goods, and the limits of applying a liquidated clause versus general damage assessment.
Summary
- A contractual delay penalty is payable only when the obligor performs the duty late—i.e., a belated but complete performance.\n- Where the obligor fails to perform or performs incompletely, assessment of compensation does not follow the delay penalty; instead damages are measured under Article 363 of the Civil Code and general civil liability principles based on actual proven loss.\n- The claimant’s demand for the liquidated penalty was dismissed because she sought rescission limited to the undelivered items rather than asserting delayed performance; accordingly the challenged award of the penalty was set aside.\n- The decision departs from earlier rulings of the Court of Cassation numbered (3280/2021, 6857/2021, 5694/2022) that held damage is not presumed when a liquidated clause exists. This is an educational summary and does not constitute judicial text or legal advice.
Practical significance
This is a general educational summary based on the points published in the official source. It does not replace the original material or a review by Ashraf Al-Khawaja before relying on it for any action.
Frequently asked questions
Subject?
Examination of entitlement to a contractual delay penalty/liquidated damages in a supply contract dispute where contract termination was sought with respect to undelivered goods, and the limits of applying a liquidated clause versus general damage assessment.
Summary?
- A contractual delay penalty is payable only when the obligor performs the duty late—i.e., a belated but complete performance.\n- Where the obligor fails to perform or performs incompletely, assessment of compensation does not follow the delay penalty; instead damages are measured under Article 363 of the Civil Code and general civil liability principles based on actual proven loss.\n- The claimant’s demand for the liquidated penalty was dismissed because she sought rescission limited to the undelivered items rather than asserting delayed performance; accordingly the challenged award of the penalty was set aside.\n- The decision departs from earlier rulings of the Court of Cassation numbered (3280/2021, 6857/2021, 5694/2022) that held damage is not presumed when a liquidated clause exists. This is an educational summary and does not constitute judicial text or legal advice.
Practical significance?
This is a general educational summary based on the points published in the official source. It does not replace the original material or a review by Ashraf Al-Khawaja before relying on it for any action.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.
Study collection
Work and employment
Browse the other studies in this subject through its dedicated topical section.
Open study collectionA related service path
Legal consultation and studies
If this study is close to your matter, review the service scope and contact the firm to discuss the facts and documents.
Review the related serviceRelated Jordanian-law guides
Contextual links to related public guide routes; they remain limited to Jordanian law and do not replace matter review.