Section 73 of the Indian Contract Act, 1872 deals with substantial damages namely :
General and special damages arising out of usual or natural and peculiar circumstances of a particular case
Section 73 of the Indian Contract Act, 1872 gives the party suffering from a breach compensation for loss or damage which naturally arose in the usual course of things from the breach (general damages), or which the parties knew, when they made the contract, to be likely to result from the breach (special damages).
This codifies the two limbs of Hadley v. Baxendale (1854). Special damages are recoverable only where the special circumstances were within the contemplation of both parties.
The section expressly bars compensation for any remote and indirect loss or damage sustained by reason of the breach, so remote damages are excluded.
Hence, the answer is General and special damages arising out of usual or natural and peculiar circumstances of a particular case.
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.
Breach of contract can result in for :
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 :
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.
