Corporate & Commercial FAQs

Will a court enforce the liquidated damages stated in my contract?

Not automatically. Under section 74 of the Indian Contract Act, a court awards reasonable compensation up to the named sum. A genuine pre-estimate may be awarded without proof of loss where loss is hard to prove, but where loss can be proved and none is shown, nothing is payable (Kailash Nath Associates v. DDA, 2015).

General information on Indian law, not legal advice. For advice on your situation, contact the firm.

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