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What is the character of damages for breach under section 73 of the Indian Contract Act, 1872?

Section 73 compensates loss that naturally arose from the breach or that the parties knew, when contracting, was likely to result from it. It excludes remote and indirect…

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What is the character of damages for breach under section 73 of the Indian Contract Act, 1872?

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Answer and explanation

Correct answer B

Section 73 compensates loss that naturally arose from the breach or that the parties knew, when contracting, was likely to result from it. It excludes remote and indirect loss.

Option feedback

Option A

A sum named in the contract is addressed separately under section 74.

Option B

This describes the compensatory function of section 73.

Option C

The provision redresses recoverable loss and does not impose punishment.

Option D

An order to perform is a different remedy from compensating loss.

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