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The Position Under English Law Essay

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POSITION UNDER ENGLISH LAW

According to the British common law, the parties can name the money is in violation of this court as a penalty if the return is irreversible, but if classified as payment of liquidated damages is recoverable. However, the difference between the quality of contract law in India does not recognize the nature of compensation as under common law to exclude somewhat complex refining section 74. In the case of criminal provisions, damage will be assessed in the usual way, and the sum is greater than the plaintiff may recover even prescribed amount. In critical contracts, and the true nature of the payment of compensation, under the conditions and inherent circumstances the court must consider in making time of the contract, rather than at the time of default. The term is used by parties not conclusive, the court is not bound by its wording. If it has long been said to be a penalty, but the original is really a pre-estimate of the loss, which will be considered as liquidated damages.
Sometimes, there is a very thin line dividing provisions relating to liquidated damages and penalties. Distinguish whether a requirement by way of liquidated damages or penalties have been summarized in the House of Lords inDunlop pneumatic tire Limited VS new garage and Electric Co., Ltd., as follows:
• Who uses the expression 'punishment ' or liquidated damages ' ' The parties may initially mean what they say, but the expression is not decisive.
• fine, its essence is

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