Experience The NoBrokerHood Difference!

Set up a demo for the entire community

Thank You For Submitting The Form
Home / Legal / Rent Agreement / Difference Between Liquidated Damages And Penalty?
Q.

Difference Between Liquidated Damages And Penalty?

view 419Views

2 Year

Comment

1 Answers

Send
0 2022-03-07T09:47:25+00:00
⤺ Reply

In the event of a contract violation, the defaulting party is obligated to pay liquidated damages and a penalty to the aggrieved party. The terms liquidated damages and penalty clauses are not interchangeable, and there is a distinction to be made. Even in a court of law, these terms are frequently used interchangeably, causing confusion. Let's take a closer look at the laws that govern them, as well as the difference between liquidated damages and penalty.

Liquidated damages and penalty: what's the difference?

  • When two or more parties agree into a contract, the amount of compensation to be paid by the defaulting party may be included in the contract. The enforceability of the compensation and the acceptance of that amount as damages differ according to English Law and the Indian Contract Act in the case of non-performance of the contract.

  • In situations when genuine damages are difficult to determine, liquidated damages are implied as a reasonable depiction of calamities. Liquidated damages are often designed to be reasonable rather than remedial.

  • Liquidated damages may be mentioned in a specific agreement provision to cover situations where a party suffers a loss due to resources with no direct financial link. For example, if a party to an agreement spills production network valuing data that is critical to a firm, liquidated damages may apply.

  • A typical model is a step in the development of a new product that may include meetings with outside providers and experts in addition to company personnel. The market value of secret plans or plans for an item is unlikely to be fixed. This may be true regardless of whether the resulting item is critical to an organisation's growth and development.

Avail yourself with end-to-end legal assistance from NoBroker while buying and selling property. 

I conclude my answer regarding the difference between liquidated damages and penalty.

Read More:

What Is Possession Delay Penalty As Per RERA?

Shifting, House?

✔

Lowest Price Quote

✔

Safe Relocation

✔

Professional Labour

✔

Timely Pickup & Delivery
inline_cards

Intercity Shifting-Upto 25% Off

Check Prices

inline_cards

Intracity Shifting-Upto 25% Off

Check Prices

inline_cards

City Tempo-Upto 50% Off

Book Now

Most Viewed Questions

I Want My Shop To Be Rented for Bank ATMWhat is the difference between sales agreement and sales registration?What is the Unregistered Sale Agreement Validity Period?How much is stamp duty and registration in Mumbai?Can a Property be Registered in Two Names?How is betterment charges/improvement charges calculated for an apartment? Is it calculated based on UDS or the Built Up area? Is it a one time payment? And if the BC/IC is paid by the builder for land before construction do we need to pay it again for apartment?Can GPA Holder Register Property in His Own Name?What is the difference between the registration of agreement of sale and sale deed?What happens when someone dies before completing an agreement to sale an immovable property?Difference Between Sale and Exchange?See All

Recently Published Questions

Failed to register the property for more than 10 years of sale deed. The person selling the property involved in the sale deed expired within this time period. What should be done?I am entering into an "agreement for sale " with the buyer of a flat in Mumbai, I am the seller. The buyer is not taking any loans. What is the safest way of taking "sale proceeds " of a flat when the cost is 1 crore plus?I sold my land recently. The measurement mentioned in Patta is more by 400 square feet than the actual measurement of the land due to reasons. The buyer was aware of this during purchase and agreed. The sale deed was prepared based on the Patta measurement. My question is, can he now claim of being cheated?How to Download Sale Deed Copy Online Karnataka?What is Difference Between Sale and Agreement To Sale?Agreement to sell and construct can be cancelled or not?How much are the Stamp Duty and Registeration Charges?What are the property registration fees?What is Byana aggreement validity?Is Transfer Duty the Same as Stamp Duty?See All

Authors Of The Question

profile
Pallavi Kumari

0 Total Answers


0


profile

Recently Answered Questions

How to get Indane gas connection? What is minimum bank limit? How to use Inverter? How do I get my paid slip without asking my manager How to check Survey no 340 sq. ft is the carpet area, so what is the build-up area? How to get property tax for a new building after demolishing the old one? Do We Need Stabilizer For Washing Machine? How To Pay HDFC Consumer Durable Loan Payment Online? How To Check HDFC Consumer Durable Loan Statement?
Flat 25% off on Home Painting
Top Quality Paints | Best Prices | Experienced Partners