1930

Present: Maartensz A.J. and Jayewardene A.J.

ABDUL MAJEED v. SILVA.

162-D. C. Colombo, 26,795.

Liquidated damages-Breach of contract- Sum recoverable as a fine-Pre-estimate of possible damage.

Where the plaintiff entered into a contract with the defendant to make and supply certain roofing sheets by a certain date and in default to pay a fine of Rs. 500, which the defendant was authorized to deduct from the balance sum due to the plaintiff who had received an advance,-

Held, that the sum provided for was liquidated damages and was recoverable as being a genuine pre-estimate of the damage which the defendant might sustain from a breach of the contract.

THE plaintiff sued the defendant to recover a sum of Rs. 610.65, balance due to him for supplying certain goods and roofing sheets. The defendant, while admitting his liability in a sum of Rs. 110,63, claimed to set off a sum of Rs. 500 as damages in terms of an agreement (Dl) dated July 20, 1927. By the agreement the plaintiff agreed to supply the roofing sheets by August 20, 1927, and in default to pay a fine of Rs 500, which the defendant was authorized to deduct from the bala