Abstract

A breach of contract is a possibility whenever two parties engage in the act of entering into or signing a contract. The parties who have been the victims of an unlawful act of breach shall be allowed the aforementioned remedies in order to provide them with justice and to protect the interests or goals of the contractual parties or parties entering into the contract. This is done to preserve the interests of the contractual parties in the contract. In the event that a contract is broken or violated, one of the conceivable remedies is the payment of damages. The purpose of establishing a systematised or structural law of injury granted for violation of contract is to preserve the community's integrity and stimulate its growth. This study will demonstrate the notion of damages, their nature, and their function according to Indian law. Hadley v. Baxendale is the case that established the standard rule for determining the amount of consequential damages that should be awarded for breach of contract. This article's objective is to provide an analysis of the words "Damages" and "Penalty" as they appear in Sections 73 and 74 of the Indian Contract Act of 1872.

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