Question

In case of breach of contract, compensation can be claimed under section 73

• A. For remote consequence of the breach
• B. For the proximate and natural consequences of breach
• C. For direct consequences of the breach
• D. For indirect consequences of the breach

Hint:

Section 73 follows the *Hadley v. Baxendale* principle: only foreseeable losses from a breach are compensable.

Answer 1

The Correct Option is B

Section 73 of the Indian Contract Act, 1872, allows compensation for loss or damage caused by a breach that is a proximate and natural consequence or reasonably foreseeable. Remote or indirect losses are not compensable. Thus, the correct answer is: \[ {\text{For the proximate and natural consequences of breach}} \]