Question

    When a contract has been broken  compensation for any

    loss or damage caused to an aggrieved party shall be given for ______________
    A The loss that naturally arose in the usual course of things from such breach Correct Answer Incorrect Answer
    B the loss for any remote and indirect loss or damage sustained by reason of the breach Correct Answer Incorrect Answer
    C The loss which the parties knew, when they made the contract, to be likely to result from the breach of it Correct Answer Incorrect Answer
    D Either A or C Correct Answer Incorrect Answer
    E Either of the above Correct Answer Incorrect Answer

    Solution

    As per Contract Act, 1872 S. 73.   Compensation for loss or damage caused by breach of contract When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it. Such compensation is not to be given for any remote and indirect loss or damage sustained by reason of the breach.

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