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    A party who suffers loss as a result of a breach of contract can in the usual course claim:
    Question

    A party who suffers loss as a result of a breach of contract can in the usual course claim:

    A.

    Ordinary damages

    B.

    Special damages

    C.

    Exemplary damages

    D.

    Penal damages

    Correct option is A

    In the case of breach of contract, the usual remedy available to the aggrieved party is a claim for ordinary damages (also known as general damages). These damages are meant to compensate for the loss that arises naturally in the usual course of things from the breach itself, as per Section 73 of the Indian Contract Act, 1872.

    These damages are recoverable without needing to prove any special circumstances, as they are presumed to be the direct and proximate result of the breach.

    Let’s briefly understand other types of damages:

    Special damages: Recoverable only if special circumstances were communicated at the time of contract.

    Exemplary or punitive damages: Awarded to punish the wrongdoer, generally not applicable in contract law.

    Penal damages: Imposed as a penalty, again rare in breach of contract cases.

    Nominal damages (Option e, if included): Symbolic amount awarded where no real loss is proved.

    Information Booster:

    The principle was laid down in Hadley v. Baxendale (1854), which established the rule of foreseeability in awarding damages.

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