Adv Ch Shahid Bhalli

Difference Between General Damages and Liquidated Damages

As per Lawkidunya, Difference Between General Damages and Liquidated Damages, actually a key difference between general damages and liquidated damages is that liquidated damages are agreed by the parties at the time that the contract is signed. In the case of general damages, these will be assessed by the court after the breach has occurred.

General Damages refers to harm which arises directly and inevitably from a breach of contract or tort. In other words, those damages that would be theoretically suffered by every injured party under these circumstances.

Liquidated Damages example would be a contractor that failed to complete a construction project on time and is charged daily until the project has been finished.

What is General Damages Claim as Per Law
General damages is compensation awarded for pain, suffering, and loss of amenity. Loss of amenity means the inability to complete activities, either temporarily or permanently, after an accident, which could be undertaken before, e.g. being unable to pursue certain hobbies or socialise with friends.

What is Called Liquidated damage as Per Law
Liquidated damages are presented in certain legal contracts as an estimate of otherwise intangible or hard-to-define losses to one of the parties. It is a provision that allows for the payment of a specified sum should one of the parties be in breach of contract.

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