Business Studies, asked by kamasanikrishnaveni, 6 months ago

State the comparison between ordinary damages and liquidated damages​

Answers

Answered by thakurrani69
7

When the amount of damages is fixed by the parties on the basis of a reasonable estimate of the probable actual loss which a party will suffer in case of breach is called liquidated damages.

Hope it will help you !

Answered by Aana0874
2

Answer:

Liquidated damages: If the amount fixed by all parties is a genuine estimate of the loss by a future breach of contract, then it is liquidated damages. ... Penalty: If the amount fixed by all parties is unreasonable or used to force the performing party to fulfill the obligation, then it is a penalty.

Explanation:

Hope it helps you... mark as brainliest

Similar questions