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Where a contract contains a stipulation by way of penalty on breach of contract, the aggrieved party is…

Section 74 of the Contract Act entitles the aggrieved party to reasonable compensation not exceeding the stipulated penalty, whether or not actual loss is proved, so the…

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Where a contract contains a stipulation by way of penalty on breach of contract, the aggrieved party is entitled for compensation :

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Correct answer C

Section 74 of the Contract Act entitles the aggrieved party to reasonable compensation not exceeding the stipulated penalty, whether or not actual loss is proved, so the entitlement is a "Reasonable amount but not more than stipulated amount".

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