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[Cites 0, Cited by 0] [Section 74] [Entire Act]

Union of India - Subsection

Section 74(e) in The Indian Contract Act, 1872

(e)A, who owes money to B, a money-lender, undertakes to repay him by delivering to him 10 maunds of grain on a certain date, and stipulates that, in the event of his not delivering the stipulated amount by the stipulated date, he shall be liable to deliver 20 maunds. This is a stipulation by way of penalty, and B is only entitled to reasonable consideration in case of breach.