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Section 74 — Compensation for Breach of Contract
74
74
Compensation for Breach of Contract
Indian Contract Act
Of the Law of Contract
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Reviewed by Adv. Shailendra Babbar, Seasoned Advocate · Practicing since 31 years🗣️ Simple Explanation
If a contract says how much money will be paid if it's broken, or has a penalty, the person who suffers can get that amount. They don't have to prove they lost that much money. The court will decide what's a reasonable amount.
💡 Real Life Example
A and B agree that if A doesn't pay B Rs. 10,000, A will pay B Rs. 20,000. If A doesn't pay, B can claim up to Rs. 20,000, even if the actual loss is less.
🛡️ KNOW YOUR RIGHTS
- •You can claim the amount specified in the contract if it's broken.
- •The court will decide if the penalty is reasonable.
Sources & References
📒 Legal text sourced from The Gazette of India & AdvocateKhoj Bare Acts Library
⚖️ Content reviewed by Adv. Shailendra Babbar, Seasoned Advocate, with 31 years of legal practice
📚 Act Reference: Indian Contract Act
Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult a qualified advocate for specific legal matters.
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