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Compensation for breach of contract where a penalty is stipulated for is provided under which Section…

Section 74 of the Indian Contract Act, 1872 is titled 'Compensation for breach of contract where penalty stipulated for' and provides that when a contract has been broken,…

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Compensation for breach of contract where a penalty is stipulated for is provided under which Section of the Indian Contract Act, 1872?

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Correct answer B

Section 74 of the Indian Contract Act, 1872 is titled 'Compensation for breach of contract where penalty stipulated for' and provides that when a contract has been broken, if a sum is named in the contract as the amount to be paid in case of such breach, or if the contract contains any other stipulation by way of penalty, the party complaining of the breach is entitled to receive reasonable compensation not exceeding the amount so named or the penalty stipulated for.

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Option A

Section 72 concerns money paid or a thing delivered by mistake or under coercion.

Option B

Correct. Section 74 of the Indian Contract Act, 1872 specifically provides for 'Compensation for breach of contract where penalty stipulated for'.

Option C

Section 73 concerns compensation for loss or damage caused by breach of contract generally.

Option D

Section 75 provides compensation to a party that rightfully rescinds a contract.

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