Site navigation

The damages are possible to be liquidated in the case of

Question and options

The damages are possible to be liquidated in the case of
  1. tort
  2. breach of contract
  3. crime
  4. Tort, breach of contract and crime alike

Answer and explanation

Correct answer: B - breach of contract
Liquidated damages are a sum fixed in advance by the parties as compensation for a breach, which is possible only where they have a contract (section 74 of the Indian Contract Act, 1872). In tort and crime there is no prior agreement between wrongdoer and victim, so any damages are unliquidated and assessed by the court.

Practice for these exams

Related question papers

Related exam syllabi

More solved explanations in Remedies for breach & damages