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Question related to contract act.
Question
Where in one composite project, the employer appoints two different contractors, for two parts of the project which are complementary in nature; delay happen on part of both the contractors and the employer levies liquidated damages on both the contractors. One Contractor dispute the levy of liquidated damage on the pretext that the delay happened due to the other contractor and vice-versa. Loss to the employer is not determinable. What is the law on levy of liquidated damages in such cases. Please revert back with a case law.
Answer ( 1 )
For proper legal advice on your query, we need to peruse the contract entered between the parties as regards the clause mentioning damages in case of delay. it would be mention in your contract as to how the damage will be levied if their is delay and further what kind of delay would attract the damages would also be clear only from the perusal of the contract between the parties. otherwise section 73 and section 74 of the contract act deals with the liquidated damages wherein if the damage was due to natural circumstances, compensation is to be paid for the breach of contract.