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Under the Indian Contract Act, 1872, where A contracts to buy B’s ship for 60,000 rupees but breaches…

Illustration (d) to section 73 of the Contract Act covers these facts: A must pay B, by way of compensation, "the excess, if any, of the contract price over the price which…

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Under the Indian Contract Act, 1872, where A contracts to buy B’s ship for 60,000 rupees but breaches his promise:

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Answer and explanation

Correct answer A

Illustration (d) to section 73 of the Contract Act covers these facts: A must pay B, by way of compensation, "the excess, if any, of the contract price over the price which B can obtain for the ship at the time of the breach of promise".

B keeps the ship, so he cannot recover the full price of ₹60,000, with or without the difference; but his loss on resale is recoverable, so he is not left without compensation.

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