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The principle of assessment of damages for breach of contract under section 73 of the Indian Contract…

Section 73 of the Indian Contract Act, 1872 allows compensation for loss "which naturally arose in the usual course of things from such breach, or which the parties knew,…

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The principle of assessment of damages for breach of contract under section 73 of the Indian Contract Act, 1872 has its roots and foundation in which of the following cases ?

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Correct answer B

Section 73 of the Indian Contract Act, 1872 allows compensation for loss "which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach". These two limbs come from the rule in Hadley v. Baxendale (1854).

Paradine v. Jane is on absolute contractual duties, Fateh Chand v. Balkishan Das is on penalties and liquidated damages under section 74, and Dutton v. Poole is an old privity case.

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