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    Question

    According to the Indian Contract Act as per section 74

    the Court cannot award damages___________
    A Less than the amount stated in the contract Correct Answer Incorrect Answer
    B Equal to the amount stated in the contract Correct Answer Incorrect Answer
    C More than the amount stated in the contract Correct Answer Incorrect Answer
    D Either a or b or c Correct Answer Incorrect Answer

    Solution

    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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