Correct option is C
The statement in option (c) is incorrect. According to Section 73 of the Indian Contract Act, a party to the contract complaining of a breach is entitled to receive compensation even if no actual damage or loss is proved, provided the loss is not remote or indirect. The courts may award
nominal damages in such cases to recognize the breach of contract, even if no substantial loss is proven.
Information Booster:
Compensation under Section 73 is available for losses that arise naturally from the breach or that were contemplated by the parties when the contract was made. The purpose of compensation is to restore the aggrieved party to the position they would have been in had the contract been performed.
Additional Knowledge:
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Rightful rescission (a): When a party rescinds a contract for valid reasons (such as fraud or misrepresentation), they are entitled to compensation for any damages suffered.
·
Bonds for public interest (b): This refers to the principle that full liability attaches to bonds when the breach concerns public interest.
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Void agreements (d): Section 73 does not apply to void agreements because such agreements have no legal standing from the outset.
