New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Section 74 of the Contract Act lays down provisions

    relating to compensation for breach of contract where ______________
    A Penalty stipulated for Correct Answer Incorrect Answer
    B Penalty specified for Correct Answer Incorrect Answer
    C Penalty stated for Correct Answer Incorrect Answer
    D Penalty non-stipulated for Correct Answer Incorrect Answer

    Solution

    Penalty stipulated for, Section 74. Compensation for breach of contract where penalty stipulated for: When a contract has been broken, if a sum is named in the contract as the amount to be paid in case of such breach, or if the contract contains any other stipulation by way of penalty, the party complaining of the breach is entitled, whether or not actual damage or loss is proved to have been caused thereby, to receive from the party who has broken the contract reasonable compensation not exceeding the amount so named or, as the case may be, the penalty stipulated for.

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