Site navigation

What kind of damages does section 73 of the Indian Contract Act, 1872 generally provide for breach of…

Section 73 provides compensation for loss that naturally arises from the breach or that the parties knew at formation was likely to result. It excludes remote and indirect…

Choose your answer

What kind of damages does section 73 of the Indian Contract Act, 1872 generally provide for breach of contract?

Select one answer
Answer and explanation

Correct answer B

Section 73 provides compensation for loss that naturally arises from the breach or that the parties knew at formation was likely to result. It excludes remote and indirect loss.

Section 74 deals separately with cases involving a sum named for breach or a penalty stipulation.

Option feedback

Option A

Section 73 assesses compensable loss. A stipulated sum for breach is addressed by section 74.

Option B

Section 73 compensates for loss arising naturally or within the parties' contemplation when contracting.

Option C

The statutory measure is compensatory. It does not impose punishment for the breach.

Option D

Section 73 measures the injured party's recoverable loss. It does not prescribe general disgorgement of the breaching party's gains.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic