Proceedings for Compensation of Negative and/or Positive Damages Between Two Tenders

Negative damages are the loss arising where a contract concluded between the parties does not come to fruition. Where the contractor fails to perform the obligation undertaken in the contract, the contracting authority may lawfully terminate it. Following termination, a fresh tender must be held to meet the public requirement subject to the tender and the contract. In that event, loss may arise between the two tenders, in that the authority lost the opportunity to consider the second highest tender in the first tender and had difficulty procuring the work at a lower price in the second.