CAF-4 · Chapter 10 · Question 4 of 12
Under Section 74, if a sum is named as the amount to be paid in case of breach, the party complaining is entitled to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Reasonable compensation not exceeding the amount so named.
Explanation
Unlike English law, Pakistani law allows the court to award 'reasonable compensation' up to the limit of the sum named, whether actual damage is proved or not.
More Remedies for breach of contract MCQs
- 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:
- Q10The term 'Quantum Meruit' literally means: