Difference beween DAMAGES and COMPENSATION

This query is : Resolved 

01 May 2009


"Damages" and "Compensation"

When Compensation can be claimed in civil suit?

When damages can be claimed in civil suit?

In the above, what is the implication of Section 500 of INDIAN pENAL CODE?

adv. rajeev ( rajoo ) (Expert)
01 May 2009

The word compensataion means : damages which compensate for loss or harm suffered.
Damages means : which caompensate for loss or harm suffered
Compensation can be claimed in a civil suit to cover the cost of damage or hardship caused by the person. If a person suffers any damages or loss because of the act of the other person, any moentary claim is awarded that is known as compensation.
In MVC cases compensation will be awarded by the rash and negligent driving by the driver.
Any damages caused to the property, a person to whom the property belongs may claim the compensation against such person who caused damages to the property.
Damages can be claimed for defamatory words by filing a civil suit.In case of maliciously or wifully behaved in such cases also damages can be claimed.for illegal acts, for bad behaviours, Damages can be claimed for loss of goods also.
Sec 500 of IPC reads as under:
Defamation against the president or the vice predssident of the governor of a state or administrator of a unior territory or minister in respect of his conduct in the discharge of his public functions when instituted upon a compalint made by the public prosecutor.
Complaint can be filed by the public prosecutor only.

sanjeev murthy desai (Expert)
01 May 2009

Good answer Mr. Rajeev

A V Vishal (Expert)
01 May 2009

‘Liquidated Damages’ means that it shall be taken as the sum, which the parties have by the contract assessed as damages to be paid whatever may be the actual damage. The parties to the contract may agree at the time of contracting that, in the event of a breach, the party in default shall pay a stipulated sum of money to the other, or may agree that in the event of breach by one party any amount paid by him to the other shall be forfeited. It is a genuine “pre-estimate of damages” likely to flow from the breach. However, this liquidated damage shall be distinguished from the term “penalty” which is an amount intended to secure performance of the contract.
In order for a liquidated damages clause to be upheld, two conditions must be met. First, the amount of the damages identified must roughly approximate the damages likely to fall upon the party seeking the benefit of the term. Second, the damages must be sufficiently uncertain at the time the contract is made that such a clause will likely save both parties the future difficulty of estimating damages. Damages that are sufficiently uncertain may be referred to as unliquidated damages, and may be so categorized because they are not mathematically calculable or are subject to a contingency which makes the amount of damages uncertain.

COMPENSATION : the act of compensating for service or loss or injury OR something (such as money) given or received as payment or reparation (as for a service or loss or injury)

Under IPC Section 499. Defamation means "Whoever, by words either spoken or intended to be read, or by signs or by visible representations, makes or publishes any imputation concerning any person intending to harm, or knowing or having reason to believe that such imputation will harm, the reputation of such person, is said, except in the cases hereinafter expected, of defame that person.

Explanation 1-It may amount to defamation to impute anything to a deceased person, if the imputation would harm the reputation of that person if living, and is intended to be hurtful to the feelings of his family or other near relatives.

Explanation 2-It may amount to defamation to make an imputation concerning a company or an association or collection of persons as such.

Explanation 3-An imputation in the form of an alternative or expressed ironically, may amount to defamation.

Explanation 4-No imputation is said to harm a person's reputation, unless that imputation directly or indirectly, in the estimation of others, lowers the moral or intellectual character of that person, or lowers the character of that person in respect of his caste or of his calling, or lowers the credit of that person, or causes it to be believed that the body of that person is in a loathsome state, or in a state generally considered as disgraceful.

Under the law of torts, defamation is the issuance of a false statement about another person, which causes that person to suffer harm. Slander involves the making of defamatory statements by a transitory (non-fixed) representation, usually an oral (spoken) representation. Libel involves the making of defamatory statements in a printed or fixed medium, such as a magazine or newspaper.

Typically, the elements of a cause of action for defamation include:

A false and defamatory statement concerning another;
The unprivileged publication of the statement to a third party (that is, somebody other than the person defamed by the statement);
If the defamatory matter is of public concern, fault amounting at least to negligence on the part of the publisher; and
Damage to the plaintiff.
In the context of defamation law, a statement is "published" when it is made to the third party. That term does not mean that the statement has to be in print.

Damages are typically to the reputation of the plaintiff, but depending upon the laws of the jurisdiction it may be enough to establish mental anguish.

Most jurisdictions also recognize "per se" defa

K.C.Suresh (Expert)
02 May 2009

Hallo friends our Vishal and rajeev made it beautifully. good. No further details required

Guest (Expert)
02 May 2009

Mr. Vishal's efforts are praise-worthy.

A.Mohamed Thaheer (Querist)
04 May 2009

Thank you very much for the pain taken by you
in explaining the difference between the two terms damages and compensation.

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