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X places an order with Y for supply of 50 radio sets. Y knows nothing of X's mode of conducting his…

Section 73 of the Indian Contract Act, following Hadley v Baxendale, denies compensation for loss that the parties did not contemplate when contracting. Y had no notice of…

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X places an order with Y for supply of 50 radio sets. Y knows nothing of X's mode of conducting his business. Y could not supply them in time. X loses a profitable contract due to non‐receipt of the radio sets and claimed his loss of profit from Y. X will fail in his claim because the nature of loss is_____

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Correct answer B

Section 73 of the Indian Contract Act, following Hadley v Baxendale, denies compensation for loss that the parties did not contemplate when contracting. Y had no notice of X's profitable contract, so the lost profit is "Remote" and cannot be recovered; it is neither "Direct" nor a pre-agreed "Liquidated" sum.

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