GENERAL KNOWLEDGE

Detailed explanation-1: -Plural noun. the amount of damages decided by a court because the parties to a contract had not agreed in advance how much the damages would be for breaking the terms of the contract. The unliquidated damages could not have been foreseen so they were decided by the court.

Detailed explanation-2: -For example, if the plaintiff contracted to buy one widget at $10 US Dollars (USD) and then, as a result of a contract breach, he had to pay $12 USD to buy that widget from someone else, then he could sue the person who breached the contract for $2 USD-his actual loss as a result of the breach.

Detailed explanation-3: -The Law of Damages under Indian Contract Act, 1872: Under this section the damages that are awarded to the aggrieved party are in the nature of unliquidated damages upon assessment of the loss and injury suffered and doesn’t compensate for indirect or remote losses arising out of such breach.

Detailed explanation-4: -A liquidated damages clause (or an agreed damages clause), is a provision in a contract that fixes the sum payable as damages for a party’s breach. In comparison, unliquidated damages are damages for a party’s breach which have not been pre-estimated.