Delaware Code Title 6 Sec. 2505D – Fines and penalties under contracts
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(a) Prohibition of penalties. — When an action for compliance with the terms of a contract is stayed pursuant to this chapter, a penalty shall not accrue for failure to comply with the terms of the contract during the period of the stay.
Terms Used In Delaware Code Title 6 Sec. 2505D
- Contract: A legal written agreement that becomes binding when signed.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(b) Reduction or waiver of fines or penalties. — If a servicemember fails to perform an obligation arising under a contract and a penalty is incurred arising from that nonperformance, a court may reduce or waive the fine or penalty if:
(1) The servicemember was in military service at the time the fine or penalty was incurred; and
(2) The ability of the servicemember to perform the obligation was materially affected by such military service.