[westicle]

Apart from the fact that these types of contractual terms are legally invalid and unenforceable.

http://en.wikipedia.org/wiki/Penal_damages

[evincarofautumn]

Wow. That’s very interesting. So the rate must actually be a reasonable estimate of expected loss. If you were to bill for the time you took out of your schedule to resolve the payment issue, it might work out to a few percent anyway.