Which of the following statements is are correct 1 A claim for damages arising out of breach of cond...........

Indian Contract Act (ICA)1872 Discharge and Breach of Contract

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Which of the following statements is/are correct:

1. A claim for damages arising out of breach of conduct is not debt.

2. A person who enters into a contract with Government does not necessarily thereby undertake any public duty.

1 only

2 only

both 1 and 2

Neither 1 nor 2

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Explanation:

- Statement 1: A claim for damages arising from breach of contract is not a “debt”; it is a claim for unliquidated damages that needs determination. So, this statement is correct.

- Statement 2: Entering into a contract with the Government does not by itself create a public duty. The contractual duty is private unless a statute imposes a public duty; so, this statement is also correct.

- Option 1: 1 only – Only first statement correct ( wrong)

- Option 2: 2 only – Only second statement correct ( wrong)

- Option 3: both 1 and 2 – Both statements correct ( correct)

- Option 4: Neither 1 nor 2 – Both statements incorrect ( wrong)

Correct Answer: Option 3: both 1 and 2