Contract Law

Contract Penalties vs. Damages Decoded โš–๏ธ


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๐Ÿ›๏ธ The Contract Clause That Could Cost You Everything

๐ŸŒŸ Imagine you sign a house construction contract that says: "If we're late, we'll pay you a fixed amount daily." Sounds fair, right? But what if the builder later claims this amount is actually an unfair penalty designed to scare them? Who has to prove it's unfair?

๐Ÿ’ก What You'll Discover:

  • ๐Ÿ” The crucial difference between liquidated damages (fair compensation) and penalties (punishment clauses)
  • โš–๏ธ Why the burden of proof matters so much in contract disputes
  • ๐ŸŽฏ How to draft contract clauses that actually protect you
  • ๐Ÿ’ช Real strategies lawyers use to challenge unfair contract terms

๐Ÿš€ Real Cases Discussed:

  • ๐Ÿ’Ž Campbell vs. Farren - The famous comedian case that showed how ยฃ1000 for any breach (big or small) was clearly a penalty
  • โญ Mayadevi vs. Lalita Prasad - The land deal case where double earnest money was deemed unfair
  • ๐Ÿ† Deshraj vs. Rohtas Singh (2023) - The Supreme Court decision that changed everything about who must prove penalties

๐ŸŽฏ Practical Takeaways:

  • ๐Ÿ“ How to write enforceable damage clauses in your contracts
  • ๐Ÿ›ก๏ธ What evidence you need to challenge unfair penalties in court
  • โšก Why simply saying "this is too much" won't work anymore

๐ŸŽ™๏ธ Whether you're signing contracts or fighting unfair clauses in court, this episode gives you the insider knowledge to protect yourself from contract traps that could cost thousands!

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Contract LawBy Sharad Bansal