Damages and breach of contract

It depends what is agreed in the contract, and what is the penalty for any damages / liquidated damages. Please refer the clause for penalty towards breach of Contract.

go through the contract ,if there is any clause for the breachof contract , then act according to it .

""can I deduct a certain amount of money from the Annual Service Charges as damages?""

if it is mentioned in the contract that u can deduct the amt from the Annual Service Charges  in case of breach ,then u can otherwise not.