Tribunal may determine if penalty or liquidated damages
56 Tribunal may determine if penalty or liquidated damages
On application by the operator or resident under a caravan park agreement, the Tribunal may determine whether:
a way of calculating rent (whether or not specified in the agreement) is intended to enable genuine reductions in rent rather than to function as a penalty provision; or
an amount (by way of penalty or liquidated damages) specified in the agreement is reasonably proportional to the actual loss that may be suffered because of the breach of the agreement.
If the Tribunal determines either of the following, the term to which the determination relates is not void as mentioned in section 55(2):
a way of calculating rent (whether or not specified in the caravan park agreement) is intended to enable genuine reductions in rent rather than to function as a penalty provision;
an amount (by way of penalty or liquidated damages) specified in the caravan park agreement is reasonably proportional to the actual loss that may be suffered because of the breach of the agreement.
The Tribunal must notify the operator and the resident of his or her determinations under this section.
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