Sets out what each side can ask a court for if the contract is broken - money compensation, and/or an order forcing performance or stopping a breach.
In plain English
This clause records the *remedies* you can pursue if the deal goes wrong. Usually the main remedy is *money* to cover the loss the breach actually caused you; you can also agree in advance a fixed sum for certain breaches, though a court will only award a *reasonable* amount, not a penalty. Sometimes money isn't enough - for example a one-of-a-kind property or asset - and you may instead ask the court to *make the other side perform* the contract or to *stop* them doing something (an injunction).
Relevant law
Indian Contract Act, 1872 - s.73 (compensation for loss naturally arising from a breach)
Indian Contract Act, 1872 - s.74 (where a sum or penalty is named, the innocent party gets reasonable compensation not exceeding that amount, whether or not actual loss is proved)
Specific Relief Act, 1963 - s.10 (specific performance of a contract, now generally enforceable subject to exceptions)
Specific Relief Act, 1963 - s.14 (contracts that cannot be specifically enforced, e.g. where money is an adequate remedy or the contract is determinable)
Specific Relief Act, 1963 - s.38 (perpetual injunction) and s.39 (mandatory injunction)
Educational, not legal advice. Clause wording should be adapted to your specific facts. For high-stakes documents, have a qualified advocate review the drafting.