AIBE question and official answer

AIBE V 2013 Set A Question 92

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Question 92 of 100 AIBE V 2013 Set A

"Where two parties have made a contract which one of them has broken, the damages which the other party ought to receive in respect of such breach of contract should be either such as may fairly and reasonably be considered arising naturally i.e. according to the usual course of things from such breach of contract itself or such as may reasonably be supposed to have been in the contemplation of the parties at the time they made the contract as the probable result of breach of it." In which case the principle was laid down:

  1. A Clegg vs. Hands
  2. B Kapur Chand vs. Himayat Ali Khan
  3. C Frost vs. Knight
  4. D Hadley vs. Baxendale Official answer

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