A contracts to deliver 1 000 bags of rice at Rs 100 per bag on a future date On the due date he refu...........

Indian Contract Act (ICA)1872 General Provisions

A contracts to deliver 1,000 bags of rice at Rs 100 per bag on a future date. On the due date he refuses to deliver. Market Price on that day is Rs 120 per bag. Which Damages can be granted by court?

Ordinary damage

Special damages

Remote damages

Vindicative damages

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Explanation:

- Ordinary Damages: These are compensation for the actual loss due to the breach of contract. In this case, the difference between the contract price (Rs 100) and market price (Rs 120) is Rs 20 per bag. Hence, the buyer would be entitled to recover Rs 20 per bag as ordinary damages.

- Special Damages: These are awarded for any loss that was in the contemplation of both parties at the time of the contract. They don't apply here as no special circumstances were mentioned.

- Remote Damages: Such damages are too far removed from the breach and are not generally recoverable. They don't apply here.

- Vindictive Damages: These are awarded to punish the wrongdoer and not typically relevant in breach of contract cases.