Difference between indian law and common law on damages
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DAMAGES UNDER INDIAN CONTRACT ACT Section 73 of the Contract Act is lays down the provision relating to damages. It provides that the party, who breaches a contract, is liable to compensate the injured party for any loss or damage caused, due to the breach of contract. For compensation to be payable, Two things should be taken into consideration (i) The loss or damage should have arisen as a natural consequence of the breach, or (ii)It should have been something the parties could have reasonably expected to arise from a breach of the contract. In the former case, an objective test would be applied where as in the latter case a subjective test would be applied. Under this section, the burden of proof lies on the injured party. This section, however, provides that compensation shall not be awarded for any remote or indirect loss sustained by the parties. Section 73 also provides that the same principles will apply for breach of a quasi-contractual obligation, i.e. in the event that an obligation resembling that created by contract has not been discharged, the injured party is entitled to receive compensation as if a contractual obligation has been breached.