Breach of Contract: A breach may cover anything from a delayed payment to a big violation, like the inability to provide a promised asset.
A contract holds legal importance and takes weight in a court of law. If proof proves a breach of contract, the normal solution includes meeting the original claims made to the offended party. It's important to note that a breach of contract is not classified as a criminal crime or a tort, and severe damages are seldom given for the non-fulfilment of agreed-upon duties.Looking for the Best Commerce Coaching?
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Aspect | Liquidated Damages | Penalty |
Basis | Grounded on genuine pre-estimated loss | High amount (not reasonable) |
Amount | Reasonable amount | High amount (not reasonable) |
Intention | To compensate for loss due to breach of contract | To enforce the other party for performance |
Basis of Amount Fixation | Based on genuine pre-estimated loss | Not connected to actual loss; arbitrary fixation |
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