(1) In accordance with section 535, the party aggrieved by the breach of contract shall be entitled to recover from the breaching party the actual loss or damage caused by the breach of contract or the loss or damage determined by the parties to the contract knowing that such loss or damage may occur at the time of making the contract.< br> (2) In case of violation of the contract, the party who is aggrieved by the agreement and does not pay for the said amount, shall be entitled to receive a reasonable amount from the other party in accordance with sub-section (1).
(3) If there is no provision in the contract for receiving compensation according to sub-section (2), the party claiming such compensation shall be entitled to pay a reasonable amount for the direct and actual loss, damage or breach of contract or compensation. However, indirect or imaginary losses, losses will not be compensated.
(4) If there is a contract to complete a work within a certain period of time, and if there is a situation to receive compensation as per sub-section (2) if such work is not completed within that period, the party paying such compensation may demand to extend the time period for completing the contract in proportion to the amount of compensation paid.
(5) It shall not be considered that the right of the party receiving other legal remedies in relation to the breach of contract has been adversely affected merely because the compensation amount has been paid in accordance with this section.