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Damages which are in contemplated of both the parties at the time of contract are called*DemurrageLiquidated damagesSpecial damagesVindictive damages

Question

Damages which are in contemplated of both the parties at the time of contract are called*DemurrageLiquidated damagesSpecial damagesVindictive damages

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Solution

The damages which are in contemplation of both the parties at the time of the contract are called Liquidated damages.

Here's a step-by-step explanation:

  1. When a contract is formed, both parties agree to certain terms and conditions. This includes the potential for damages if the contract is breached.

  2. Liquidated damages are a type of damage that both parties agree upon at the time of the contract. These damages are usually specified in the contract itself.

  3. The purpose of liquidated damages is to estimate potential loss in case of breach. It provides a legal remedy and compensates the injured party.

  4. Demurrage, special damages, and vindictive damages are different types of damages that may not necessarily be contemplated at the time of contract formation.

So, the correct answer is Liquidated damages.

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