Breach of contract can result in for :
Both (A) and (B)
Under Section 73 of the Indian Contract Act, 1872, a party suffering from breach is entitled to compensation for loss or damage which naturally arose in the usual course of things or which the parties knew, when they made the contract, to be likely to result from breach. Such damages, assessed by the court, are unliquidated damages.
Under Section 74, where the contract itself names a sum to be paid in case of breach (liquidated damages) or contains a penalty stipulation, the aggrieved party is entitled to reasonable compensation not exceeding the amount so named.
Thus breach may result in either kind of damages depending on whether the parties pre-estimated them in the contract.
Hence, the answer is Both (A) and (B).
Similar Questions
In bank guarantee, the number of parties involved in the agreement are ..................... .
Unless there is .................., there can be no contract.
Which one of the following is not an essential element of a valid contract as per section 10 of Indian Contract Act ?
The finder of goods has a right of .................... over the goods for his expenses.
Which of the following is not an example of implied consent for discharge of contract ?
Which among the below is essential for a valid contract of agency ?
Read Assertion (A) and Reason (R) and with the help to codes given below, point out the correct explanation :
Assertion (A) :
An acceptance is to a proposal what a lighted match is to a train of gunpowder.
Reason (R) :
Acceptance converts the offer into a promise and then it is late to remove.
A supplies the wife and children of B, a lunatic, with necessaries suitable to the style of their living. Whether A can claim the reimbursed from B’s property under which section of certain relations resembling those created by contract ?
The right of the power to redeem back the goods pledged continued till :
A frustrated contract is :
Important Questions from Indian contract acts, 1872
Which is the term used for a contract where both the parties to the contract have fulfilled their obligations under the contract?
As per Section 73 of the Indian Contract Act, 1872, in estimating the loss or damage arising from a breach of contract, what must be taken into account?
As per the Indian Contract Act, 1872, the revocation of a continuing guarantee by the death of a surety operates:
In bank guarantee, the number of parties involved in the agreement are ..................... .
Unless there is .................., there can be no contract.
