There is some confusion in respect of how LD (Liquidated Damages), due to delay in supply, is to be calculated. The details of a case are as under -
1. LD terms : LD shall be deducted @ 1% per week subject to maximum of 10% of the contract value in case of delay in supply beyond contract despatch date
2. Contract despatch date : 31/12/2011
The LD calculations as I understand have been done and are in the attached file. The payor says that, as per the LD clause quoted above, even of ONE despatch is delayed by 10 weeks (or more) the contractual LD deductible is 10% of the PO value.
WHO IS CORRECT as per Indian Business Law norms ?
Thanks & regards