What are the Liquidated Damages, rates of its recovery and conditions for its waiving off?
Ans. Compensation of loss on account of late delivery where loss is pre-estimated and mutually agreed to is termed as the Liquidated Damage (LD). If the contractor fails to deliver the stores or any installment thereof within the Delivery Period or at any time repudiates the contract before expiry of such period the CFA without prejudice to the right of the purchaser to record for breach of contract may recover from the contractor as agreed LD including admin charges and not by way of penalty a sum equivalent to 0.5% of the prices of any stores which the contractor has failed to deliver within the agreed period of delivery for each week or part thereof during which the delivery of such stores may be in arrears. The total damages shall not exceed value of 5% of the undelivered goods. When the delay in delivery was due to reasons not within the control of supplier or when the supplier cannot be held responsible for the delay in delivery, the IFA may consider giving concurrence for waivin
