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

Section 73 provides compensation for recoverable loss caused by the breach, including loss arising naturally or contemplated by the parties at formation. A stipulated amount…

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

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Correct answer B

Section 73 provides compensation for recoverable loss caused by the breach, including loss arising naturally or contemplated by the parties at formation.

A stipulated amount or penalty is addressed by section 74, which applies a reasonable-compensation limit.

Option feedback

Option A

A sum fixed in the contract for breach is dealt with under section 74.

Option B

Compensatory damages address legally recoverable loss resulting from the breach.

Option C

The purpose of section 73 compensation is to address loss, rather than to punish.

Option D

Compensatory damages are available under section 73.

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