| Direction: Each of the next 15 questions consists of two statements, one labelled as 'assertion' (A) and other as 'Reason' (R). You are to examine these two statements carefully and select the correct answer. |
| Assertion (A) In the event of breach of contract the aggrieved party is entitled to recover compensation for the loss or damage which is caused to him by breach of contract. |
| Reason (R) The object of awarding damages to the aggrieved party is to put him in the same position in which he would have been if the contract had been performed Damages are, therefore assessed on that basis. |
A) Both A and R are true and R is the correct explanation of A
B) Both A and R are true, but R is not the correct explanation of A
C) A is true, but R is false
D) A is false, but R is true
Correct Answer: A
Solution :
According to Section 73 of, the Indian Contract Act, 1872, both A and R are true and R is the correct explanation of (A) As per the above mentioned section, when a contract has been broken, the party who suffers by such breach is entitled to receive the compensation for any loss or damage caused, and the main aim of awarding damages is to put him in the same position in which he would have been if the contract had been performed
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