Indemnity and Damages in Infrastructure Contracts

Litigation attorney Alejandro Agudelo authored an article for Asuntos Legales in which he analyzes the role of penalty and indemnity clauses in infrastructure contracts. He explains that these provisions operate differently, with penalty clauses allowing parties to anticipate damages arising from a breach and indemnity clauses allocating risks associated with contingencies that do not necessarily stem from noncompliance. Mr. Agudelo notes that properly structuring these provisions is key to efficiently allocating risks, protecting parties' interests and preventing disputes throughout the execution of the contract.

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