(1) In the case of breach of
a contract under Section 535, the party aggrieved by it shall be
entitled to recover from the party in breach of the contract damages
for the actual loss or damage caused by the breach or such loss or
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damage which the contracting parties knew when they made the
contract to be likely result from the breach.
(2) If the parties to a contract, in anticipation, at the time
of its formation specify a sum in the contract, which becomes
payable for breach of the contract, the aggrieved party shall be
entitled to recover a reasonable amount not in excess of that sum
from the other party, pursuant to sub-section (1).
(3) If the contract does not provide for compensation
referred to in sub-section (2), the party claiming such compensation
shall be entitled to recover a reasonable amount for the direct and
actual loss or damage resulted from the breach of contract or for the
breach of contract or for compensation.
Provided that no compensation may be recovered for any
indirect or remote loss or damage.
(4) If a contract, which is concluded for the completion of
any act within a fixed period, contains a provision that
compensation as referred to in sub-section (2) is payable if such an
act cannot be completed within that period, the party paying such
compensation may request for the extension of the period for the
completion of the contract in proportion to the amount of
compensation paid by him or her.
(5) The right of a party to a contract to seek other legal
remedies for the breach of a contract shall not be deemed adversely
affected merely by the reason that the amount of compensation has
been paid pursuant to this Section.
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