Question

Law laid down under section -73 of Indian Contract Act 1872 is related to which of the following cases:

• A. Hothester Vs De-la-tur
• B. Rabinson Vs Devison
• C. Hedley Vs Baxendal
• D. Dikinson Vs Dads

Hint:

The rules for calculating damages for breach of contract in India (Section 73) come from the landmark English case {Hadley v. Baxendale}. This case established the two-limb test for remoteness of damage: what flows naturally from the breach, and what was in the reasonable contemplation of the parties at the time of the contract.

Answer 1

The Correct Option is C

Section 73 of the Indian Contract Act, 1872, deals with compensation for loss or damage caused by a breach of contract. It lays down the rule for measuring damages, stating that the aggrieved party is entitled to compensation for any loss which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it. This principle of 'remoteness of damages' is directly derived from the rules laid down in the famous English case of Hadley v. Baxendale (1854). The other cases are related to different principles: (a) is on anticipatory breach, (b) is on frustration of contract, and (d) seems to be a misspelling of *Dickinson v Dodds* (revocation of offer).