TMI BlogCompensation for breach of contract where penalty stipulated forX X X X Extracts X X X X X X X X Extracts X X X X ..... er stipulation by way of penalty, the party complaining of the breach is entitled, whether or not actual damage or loss is proved to have been caused thereby, to receive from the party who has broken the contract reasonable compensation not exceeding the amount so named or, as the case may be, the penalty stipulated for. Explanation: A stipulation for increased interest from the date of default ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled to recover from A such compensation, not exceeding Rs. 1,000, as the Court considers reasonable. (b) A contracts with B that if A practises as a surgeon within Calcutta, he will pay B Rs. 5,000. A practises as a surgeon in Calcutta. B is entitled to such compensation, not exceeding Rs. 5,000, as the Court considers reasonable. (c) A gives a recognizance binding him in a penalty of Rs. 500 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to reasonable compensation in case of breach. (f) A undertakes to repay B a loan of Rs. 1,000 by five equal monthly instalments, with a stipulation that, in default of payment of any instal ment, the whole shall become due. This stipulation is not by way of penalty, and the contract may be enforced according to its terms. (g) A borrows Rs. 100 from B and gives him a bond for Rs. 200 payable by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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