Objective Questions with Answers on Law Of Contract - 55

1) Which one of the following cases is related to section 73 of the Indian Contract Act 1872 ? 

A) Hedley Vs Baxendale 

B) Harvey Vs Faciw

C) Satyabrat Ghose vs Mugneeram 

D) Carlill vs Carbolic small box Co.

Answer : A 

3) If the contract contains a terms that a fixed amount shall be paid on breach of contract, the Court cannot grant more than that as damages. This rule can be found in :

A) Hadley vs Baxendale

B) Section 73 of Indian Contract Act.

C) Section 74 of Indian Contract Act.

D) Section 75 of Indian Contract Act.

Answer : C

3) When a contract has been broken, the party who suffer by such breach, is entitled to receive the damages from the party. Who has broken the contract ?

A) Liquidated damage

B) Compensatory damage

C) Penal damage

D) None of the above

Answer : B

4) The principal underlaying the payment of damages for non-performance of contract is :

A)  To place the injured party in the position he would have been, had the contract been performed.

B) To accommodate the injured party.

C)  To punish the party responsible for breach of contract.

D) To compensate for the losses caused it to the injured party.

Answer : A

5) Which one of the following case relates to damages for breach of contract ?

A)  Lalman Shukla vs Gauri Datta.

B) Carlill vs Carbolic smoke ball company.

C) Hadley vs Baxendale

D) Taylor vs Coldwell

Answer : C