Liquidated Damages: Settled Law Yet An Unsettling Dispute thumbnail
Liquidated Damages: Settled Law Yet An Unsettling Dispute
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the primary responsibility of the employer is to fix the liability against the contractor on the basis of cogent facts that the contractor has breached the contract by delaying the performance beyond the stipulated time. Unless such breach is established, the question of imposition of any amount of
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  • the primary responsibility of the employer is to fix the liability against the contractor on the basis of cogent facts that the contractor has breached the contract by delaying the performance beyond the stipulated time. Unless such breach is established, the question of imposition of any amount of compensation does not arise at all. In the case of...
  • does not take into account the delays caused by the employer or by various intervening factors beyond the control of the contractor.
  • Raman Iron Foundry case (Supra), (followed in many later judgments) held that a claim for liquidated damages for all practical purposes stands on the same footing as unliquidated damages, and thus, it does not give rise to a debt until the liability is adjudicated and damages assessed by a Court or other adjudicatory authority.
  • “the breach of contract does not eo instanti incur any pecuniary obligation, nor does the party complaining of the breach becomes entitled to a debt due from the other party. The only right which accrues at that moment is that the party aggrieved by the breach of contract has a right to sue for damages. Thus when damages are assessed, the court in ...

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