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Fateh Chand vs Balkishan Das on 15 January, 1963

58) In the case titled as Fateh Chand v. Balkishan Das, AIR 1963 SCC 1405 Hon'ble Supreme Court adopted the view that under the common law a genuine pre-estimate of damages by mutual agreement is regaled as stipulation naming liquidated damages. The aggrieved party is entitled to receive the compensation from the party who has broken the contract, whether or not actual damage or loss is proved to have been caused by the breach. It dispenses with proof of "actual loss or damages". Section 74 of the Indian Contract Act does not justify the award of compensation when no legal injury has resulted after breach. Compensation for breach of contract can be awarded to make good of the loss or damage which naturally arose in the usual course of things or which the parties when making the contract were aware of.
Supreme Court of India Cites 7 - Cited by 574 - J C Shah - Full Document
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