§ Mr. Gordon PrenticeTo ask the Secretary of State for Foreign and Commonwealth Affairs if he will list the contracts entered into with private sector companies for the provision of goods or services since May 1997 where penalty clauses were triggered for non-performance; and if he will make a statement. [122019]
§ Mr. HainPenalty clauses are not legally enforceable, but the FCO does include liquidated damages clauses in its contracts when this is appropriate. The FCO has a large number of contracts in operation at any one time, but details are not held centrally. A record of contracts where liquidated damages clauses had been enforced could be provided only at disproportionate cost.