Section 83: Compensation on breach of contract

1) In case a contract has been breached under Section 82, the aggrieved party may realise from the party who has broken the contract the actual loss or damage suffered by him/her as a result of such breach of contract of the loss or damage, which the contracting parties had anticipated at the time of signing the contract.

2) In case the contract provides that any specific amount or compensation shall be paid in the event of a breach of contract, the aggrieved party may recover from the other party a reasonable amount not exceeding that amount.

3) In case the amount of compensation under sub-section (2) is not mentioned, the party making a claim for such compensation may realise a reasonable amount in consideration of the direct and actual looser damage that has resulted from the breach of contract or in consideration of the breach of contract, or in consideration of the breach of contract, or in consideration of compensation. No compensation may be recovered for any indirect or imaginary loss or damage.

4) In case a contract has been signed for completing any work within a specific period, and in case provision has been made for payment of compensation under Sub-section (1) for failure to complete that work within the specific period, the party paying compensation may request for extension of the period for completing the contract in proportion to the amount paid by him/her as compensation.