Compensation For Breach Of Contract - 1843 Words

Section 74: Compensation for breach of contract where penalty stipulated for Section 74 lays down that â€Å"When a contract has been broken, if a sum is named in the contract as the amount be paid in case of such breach, or if the contract contains any other stipulation by way of penalty, the party complaining of the breach is entitled, whether or not actual damage or loss is proved to have been caused thereby, to receive from the party who has broken the contract reasonable compensation not exceeding the amount so named or, as the case may be, the penalty stipulated for. Illustrations A contracts with B to pay B Rs. 1,000 if he fails to pay B Rs. 500 on a given day. A fails to pay B Rs. 500 on that day. B is entitled to recover from A such compensation, not exceeding Rs. 1,000, as the court considers reasonable.† In this section the only exception is â€Å"when any person enters into any bail bond, recognizance or other instrument of the same nature or, under the provisions of any law, or under the orders of the Central Government or of any State Government, gives any bond for the performance of any public duty or act in which the public are interested, he shall be liable, upon breach of the condition of any such instrument, to pay the whole sum mentioned therein † This section basically comes to play when a specific amount is mentioned in a contract as the amount payable in the event of breach or any other stipulation regarding a penalty is provided in a contract and theShow MoreRelatedDamages For Breach Under Indian Conract Act Essay1390 Words   |  6 PagesDAMAGES FOR BREACH UNDER INDIAN CONRACT ACT When a contract has been broken by the party who suffers by such breach1is entitled to receive from the party who has broken the , contract compensation for any loss or damage caused to him by whch the natural course of things from such breach or which the parties knew when they made the contract ,to be likely to result from breach of it , such compensation is not to be given by the any remote loss or the damage sustained by the reason of breach. ExplanationRead MoreThe Contract Between Tara And Vernon1559 Words   |  7 Pages(a) Is there a contract between Tara and Vernon? Yes, there is a contract between Tara and Vernon. Although parties may have entered into a valid contract, it is necessary to ascertain the extent of the obligations that the parties have entered into, that is the contents of the contract. A contract may be made wholly by word of mouth, we called it oral contract or wholly in writing, we called it written contract. Where the contract between Tara and Vernon is wholly in writing, the court will construeRead MoreA Contract Is A Violation Agreement Between Two Or More Persons / Parties1518 Words   |  7 PagesA contract is a lawful agreement between two or more persons/parties/people within the limits of their contractual capacity, with the serious intention of creating a legal obligation, communication such intentions without vagueness, each to the other being of the same mind as to the subject matter, to perform positive or negative acts which are possible of performance. (Gibson Fraser, 2011) To have a valid contract three elements are necessary: agreement, intention to create and consideration.Read MoreThe Position Under English Law Essay1337 Words   |  6 Pagesthe quality of contract law in India does not recognize the nature of compensation as under common law to exclude somewhat complex refining section 74. In the case of criminal provisions, damage will be assessed in the usual way, and the sum is greater than the plaintiff may recover even prescribed amount. In critical contracts, and the true nature of the payment of compensation, under the conditions and inherent circumstances the court must consider in making time of the contract, rather than atRead MoreMonetary Compensation For A Loss, Detriment, Or Injury? Essay1488 Words   |  6 PagesLiquidated damages are defined as ‘Monetary compensation for a loss, detriment, or injury to a person or a person s rights or property, awarded by a court judgment or by a contract stipulation regarding breach of contr act’ (1). Also referred to as liquidated and ascertained damages, liquidated damages are damages whose amount the parties agreed upon during the formation of a contract which the injured party can claim as compensation upon a specific breach, unlike unliquidated damages which are notRead MoreMedical Organizations And An Exclusive Contract1508 Words   |  7 PagesHospitals or specialized medical organizations often enter into a contract that is â€Å"Exclusive† meaning that the person or people will be providing a specific service to that organization. Specialized medical organizations also known as ancillary service departments are â€Å"specialized† departments such as radiologists, anesthesiologist, and cardiologists. Exclusive contracts are often seen between these specialized departments such as in the case of nurse Oltz, an anesthesiologist for St. Peter’s CommunityRead MoreAn Intentional Tort Action Against A Grape Producer945 Words   |  4 Pag esinvolving a breach contract between my health food products business and a grape producer and distributor. In the words of the Honorable Allen M. Linden â€Å"Tort laws have a noble mission and opportunity to help people in trouble. The injured and the bereaved desperately require tort lawyers to help them retake whatever is left of their lives that can be retaken with money† (Linden, 2005). I seek restitution for compensatory damages for loss of revenue, pain and suffering due to the broken contract. As wellRead MoreAffects of European Law on English Law1370 Words   |  6 Pagessue each other on claims which accumulated prior termination. Such example where agent could be sued for negligent performance of his obligation due to agent’s illness. Thus, if agency is contractual, the contract could only be terminable on a reasonable notice to prevent a breach of contract by principal. The relationship between Principal and Agent is stated in common law where agent is in a fiduciary relationship with the Principal. â€Å"Agency is the relationship arising where one person,Read MoreWedding Dress : A Legal Contract933 Words   |  4 PagesIn September 2014 a legal contract had been stipulated between â€Å"JME Wedding Dresses† and Michael in order to create a particular wedding dress made of an expensive Italian material for the wedding of her daughter Sophia. A contract can be created thank to an offer and an acceptance between the offeree and the offeror, which both have legal capacities. Therefore, a commercial binding agreement has been created, which the court will enforce, if needed. A Contract establishes the terms within it, thereRead MoreWarranties Are An Important Contract Term1716 Words   |  7 Pagesa) Warranties are an important contract term which are applied to insurance policies (either implied or expressly written into the contract) and essentially they outline a promise made by the insured relating to facts of the risk or to something which the insured has agreed to do. For example the warranty may require: †¢ Rubbish is to be cleared up each night and removed from the premises †¢ The alarm systems are to be maintained in full working order and put into operation when the premises are