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Can client deduct liquid damages charges from the progress invoice. What is legal procedure to impose the Liquid Damages on Contractor?

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Question added by GHULAM RASOOL , Senior Commercial Manager , Red Sea Development Company
Date Posted: 2015/06/20
Gayasuddin Mohammed
by Gayasuddin Mohammed , Advocate , Practicing Law before High Court at Hyderabad

How come any one can deduct the liquid damages without ascertaining the fact of damage caused or breach of contract caused by the appropriate adjudicating authority or through Arbitration in case if there is a Arbitration clause in the contract. I think due procedure of law had to be follow to seek damages for the non performance or any breach of contract. Thanks.

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