CAF-4 · Chapter 10 · Question 3 of 12
When a contract contains a clause stating a specific amount to be paid in case of a breach, this is known as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Liquidated damages or penalty.
Explanation
Section 74 deals with cases where a sum is named in the contract as the amount to be paid in case of breach.
More Remedies for breach of contract MCQs
- Q5The primary purpose of awarding damages for breach of contract is:
- Q6What are 'nominal damages'?
- Q7An order of the court requiring a party to carry out their specific promise as per the contract is known as:
- Q8In which cases is 'Specific Performance' usually NOT granted?
- Q9A court order restraining a person from doing a particular act (like working for a rival) is called an: