#genuine pre-estimate

Karnataka High Court rules that liquidated damages under Section 74 of the Indian Contract Act are enforceable without proof of actual loss if the sum represents a genuine pre-estimate of damages, reinforcing contractual certainty in commercial disputes. The ₹15 crore award stands despite the breaching party's failure to dispute key factual claims.

Delhi High Court rules that Price Reduction Schedule clauses in commercial contracts qualify as genuine pre-estimates of loss under Section 74 of the Contract Act, binding parties without requiring proof of actual damage. The judgment reinforces that Section 34 challenges cannot reopen factual findings where parties have explicitly agreed to liquidated damages terms.

Delhi High Court upholds Rs.25 lakh liquidated damages under arbitration award, clarifying that proof of actual loss is not required if parties agreed to genuine pre-estimate in contract.