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    Question

    A party can claim compensation for any loss or damage caused to him, by breach of contract, which____________________

    A Naturally arose in the usual course of things Correct Answer Incorrect Answer
    B Is remote but resulted in damage being sustained by the party Correct Answer Incorrect Answer
    C Parties knew, when they made the contract, to be likely to result from breach Correct Answer Incorrect Answer
    D Either a or c Correct Answer Incorrect Answer

    Solution

    Contract Act Section 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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