Legal Concepts Of The Indian Contract Act Essay

1968 Words Oct 29th, 2015 8 Pages
Oxford dictionary defines damages as ³financial compensation for loss or injury´.In law, damages are money claimed by, or ordered to be paid to, a person as compensationfor loss or injury Black 's Law Dictionary.In context of the Indian Contract Act, 1872 damages are referred in context to breach of contract i.e. a party 's failure to perform some contracted-for or agreed-upon act, or his failure tocomply with a duty imposed by law which is owed to another or to society.Breach of contract is a legal concept in which a binding agreement or bargained-for exchange is nothonored by one or more of the parties to the contract by non-performance or interference with theother party 's performance
On a breach of contract by a defendant, a court generally awards the sum that would restorethe injured party to the economic position they expected from performance of the promise or promises (known as an "expectation measure" or "benefit-of-the-bargain" measure of damages).When it is either not possible or not desirable to award damages measured in that way, acourt may award money damages designed to restore the injured party to the economic position they occupied at the time the contract was entered (known as the "reliancemeasure"), or designed to prevent the breaching party from being unjustly enriched

Parties may contract for liquidated damages to be paid upon a breach of the contract by oneof the parties. Under common law, a liquidated damages clause will not be enforced if…

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