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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 117372
Experience:  Attorney experienced in commercial litigation.
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A settlement agreement included a provision for daily

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A settlement agreement included a provision for daily liquidated damages of x amount if a company credit card account was used beyond a date certain. The company credit card was claimed lost/stolen and a replacement card for the original card was issued and is still being used (now 3 years beyond penalty date) The replacement card was the same in all respects as the original card except that the last 5 digits were changed. Do the liquidated charges apply to the replacement credit card (to the original) why or why not? Please be as detailed and specific as possible. Additional background available upon request.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
A replacement card is nothing more than the same card on the same account with a new number for security reasons. In court, the court looks at the intent of the agreement if it can be determined from the writing. So, in your agreement it said liquidated damages for using the company card beyond a date, a replacement company card is sill the company card, just a new number, so that card would be considered no different at all than the original card. No different than if the company card expired before the date in the agreement, if they sent a new card with new expiration date, it is still the same card described in the agreement that could not be used beyond that date.
Customer: replied 1 year ago.
Excellent is there a legal term for the concept you describe?

Thank you for your reply>

The concept can be called substitution, you simply substituted one card with a replacement. Same card, same account.

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