Question Description
The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation such as the failure to deliver a promised asset. A contract is binding and will hold weight if taken to court. To successfully claim a breach of contract, it is imperative to be able to prove that the breach occurred.One may think of a contract breach as either minor or material. A "minor breach" happens when you dont receive an item or service by the due date. A "material breach" is when you receive something that is different from what was stated in the agreement. Further, a breach of contract generally falls under one of two categories: an "actual breach"—when one party refuses to fully perform the terms of the contract, or an "anticipatory breach"—when a party states in advance that it will not be delivering on the terms of the contract.There are many types of damages for breach of contract that you may receive should a breach occur, these being meted out both to deter parties from breaking contracts and to compensate parties should a contract be broken. The main types of damages are compensatory, liquidation, punitive, nominal, and ordinary damages.Compensatory damages are monetary damages that are awarded with the intent of compensating the non-breaching party for any losses suffered as a result of a contract breach. They are not designed to punish the breaching party, but merely make the party that was breached against "whole again", as it is commonly phrased.In the realm of compensatory damages, there are two sub-types of damages, and they are: Expectation damages, these are meant to cover whatever the injured party expected to obtain from the contract. Calculating this is usually straightforward, as it is usually based on the terms of the contract or market values. Consequential damages, these are meant to reimburse an injured party for any indirect damages outside of what was covered in the contract; it includes the loss of business profits stemming from an undelivered or unperformed task. Liquidation damages are damages that are stated specifically in the contract. They can be put in a contract when damages are difficult to foresee, and an estimate is necessary for damages should there be a breach. Thus, such damages are agreed upon by both parties during the contract negotiation. Punitive damages are damages designed to punish a breaching party and deter parties from committing breaches. Such damages are rarely awarded for contract breaches, however, although they may be awarded in some tort or fraud cases that overlap contract case. Ordinary damages are the damages that stem from the ordinary, natural, and probable course of events in the breach of contract.In some cases, monetary damages may be judged insufficient to compensate the aggrieved party. In this case, equitable remedies may be awarded.Q.Ramu agreed to sell cotton to Ajay at Rs. 50 per bag with the payment to be made at the time of delivery, but the market price rose to Rs. 60 per bag at the time of delivery. Ramu refused to sell them not less than Rs. 55 per bag to Ajay. Decidea)Ajay is not eligible for receiving any kind of compensation from Ramu.b)Ajay is eligible for receiving damage compensation from Ramu for the loss due to change in market price during the normal course of business.c)There is no breach of contract; hence, no damage compensation is to be received by Ajay.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation such as the failure to deliver a promised asset. A contract is binding and will hold weight if taken to court. To successfully claim a breach of contract, it is imperative to be able to prove that the breach occurred.One may think of a contract breach as either minor or material. A "minor breach" happens when you dont receive an item or service by the due date. A "material breach" is when you receive something that is different from what was stated in the agreement. Further, a breach of contract generally falls under one of two categories: an "actual breach"—when one party refuses to fully perform the terms of the contract, or an "anticipatory breach"—when a party states in advance that it will not be delivering on the terms of the contract.There are many types of damages for breach of contract that you may receive should a breach occur, these being meted out both to deter parties from breaking contracts and to compensate parties should a contract be broken. The main types of damages are compensatory, liquidation, punitive, nominal, and ordinary damages.Compensatory damages are monetary damages that are awarded with the intent of compensating the non-breaching party for any losses suffered as a result of a contract breach. They are not designed to punish the breaching party, but merely make the party that was breached against "whole again", as it is commonly phrased.In the realm of compensatory damages, there are two sub-types of damages, and they are: Expectation damages, these are meant to cover whatever the injured party expected to obtain from the contract. Calculating this is usually straightforward, as it is usually based on the terms of the contract or market values. Consequential damages, these are meant to reimburse an injured party for any indirect damages outside of what was covered in the contract; it includes the loss of business profits stemming from an undelivered or unperformed task. Liquidation damages are damages that are stated specifically in the contract. They can be put in a contract when damages are difficult to foresee, and an estimate is necessary for damages should there be a breach. Thus, such damages are agreed upon by both parties during the contract negotiation. Punitive damages are damages designed to punish a breaching party and deter parties from committing breaches. Such damages are rarely awarded for contract breaches, however, although they may be awarded in some tort or fraud cases that overlap contract case. Ordinary damages are the damages that stem from the ordinary, natural, and probable course of events in the breach of contract.In some cases, monetary damages may be judged insufficient to compensate the aggrieved party. In this case, equitable remedies may be awarded.Q.Ramu agreed to sell cotton to Ajay at Rs. 50 per bag with the payment to be made at the time of delivery, but the market price rose to Rs. 60 per bag at the time of delivery. Ramu refused to sell them not less than Rs. 55 per bag to Ajay. Decidea)Ajay is not eligible for receiving any kind of compensation from Ramu.b)Ajay is eligible for receiving damage compensation from Ramu for the loss due to change in market price during the normal course of business.c)There is no breach of contract; hence, no damage compensation is to be received by Ajay.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation such as the failure to deliver a promised asset. A contract is binding and will hold weight if taken to court. To successfully claim a breach of contract, it is imperative to be able to prove that the breach occurred.One may think of a contract breach as either minor or material. A "minor breach" happens when you dont receive an item or service by the due date. A "material breach" is when you receive something that is different from what was stated in the agreement. Further, a breach of contract generally falls under one of two categories: an "actual breach"—when one party refuses to fully perform the terms of the contract, or an "anticipatory breach"—when a party states in advance that it will not be delivering on the terms of the contract.There are many types of damages for breach of contract that you may receive should a breach occur, these being meted out both to deter parties from breaking contracts and to compensate parties should a contract be broken. The main types of damages are compensatory, liquidation, punitive, nominal, and ordinary damages.Compensatory damages are monetary damages that are awarded with the intent of compensating the non-breaching party for any losses suffered as a result of a contract breach. They are not designed to punish the breaching party, but merely make the party that was breached against "whole again", as it is commonly phrased.In the realm of compensatory damages, there are two sub-types of damages, and they are: Expectation damages, these are meant to cover whatever the injured party expected to obtain from the contract. Calculating this is usually straightforward, as it is usually based on the terms of the contract or market values. Consequential damages, these are meant to reimburse an injured party for any indirect damages outside of what was covered in the contract; it includes the loss of business profits stemming from an undelivered or unperformed task. Liquidation damages are damages that are stated specifically in the contract. They can be put in a contract when damages are difficult to foresee, and an estimate is necessary for damages should there be a breach. Thus, such damages are agreed upon by both parties during the contract negotiation. Punitive damages are damages designed to punish a breaching party and deter parties from committing breaches. Such damages are rarely awarded for contract breaches, however, although they may be awarded in some tort or fraud cases that overlap contract case. Ordinary damages are the damages that stem from the ordinary, natural, and probable course of events in the breach of contract.In some cases, monetary damages may be judged insufficient to compensate the aggrieved party. In this case, equitable remedies may be awarded.Q.Ramu agreed to sell cotton to Ajay at Rs. 50 per bag with the payment to be made at the time of delivery, but the market price rose to Rs. 60 per bag at the time of delivery. Ramu refused to sell them not less than Rs. 55 per bag to Ajay. Decidea)Ajay is not eligible for receiving any kind of compensation from Ramu.b)Ajay is eligible for receiving damage compensation from Ramu for the loss due to change in market price during the normal course of business.c)There is no breach of contract; hence, no damage compensation is to be received by Ajay.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer?.

Solutions for The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation such as the failure to deliver a promised asset. A contract is binding and will hold weight if taken to court. To successfully claim a breach of contract, it is imperative to be able to prove that the breach occurred.One may think of a contract breach as either minor or material. A "minor breach" happens when you dont receive an item or service by the due date. A "material breach" is when you receive something that is different from what was stated in the agreement. Further, a breach of contract generally falls under one of two categories: an "actual breach"—when one party refuses to fully perform the terms of the contract, or an "anticipatory breach"—when a party states in advance that it will not be delivering on the terms of the contract.There are many types of damages for breach of contract that you may receive should a breach occur, these being meted out both to deter parties from breaking contracts and to compensate parties should a contract be broken. The main types of damages are compensatory, liquidation, punitive, nominal, and ordinary damages.Compensatory damages are monetary damages that are awarded with the intent of compensating the non-breaching party for any losses suffered as a result of a contract breach. They are not designed to punish the breaching party, but merely make the party that was breached against "whole again", as it is commonly phrased.In the realm of compensatory damages, there are two sub-types of damages, and they are: Expectation damages, these are meant to cover whatever the injured party expected to obtain from the contract. Calculating this is usually straightforward, as it is usually based on the terms of the contract or market values. Consequential damages, these are meant to reimburse an injured party for any indirect damages outside of what was covered in the contract; it includes the loss of business profits stemming from an undelivered or unperformed task. Liquidation damages are damages that are stated specifically in the contract. They can be put in a contract when damages are difficult to foresee, and an estimate is necessary for damages should there be a breach. Thus, such damages are agreed upon by both parties during the contract negotiation. Punitive damages are damages designed to punish a breaching party and deter parties from committing breaches. Such damages are rarely awarded for contract breaches, however, although they may be awarded in some tort or fraud cases that overlap contract case. Ordinary damages are the damages that stem from the ordinary, natural, and probable course of events in the breach of contract.In some cases, monetary damages may be judged insufficient to compensate the aggrieved party. In this case, equitable remedies may be awarded.Q.Ramu agreed to sell cotton to Ajay at Rs. 50 per bag with the payment to be made at the time of delivery, but the market price rose to Rs. 60 per bag at the time of delivery. Ramu refused to sell them not less than Rs. 55 per bag to Ajay. Decidea)Ajay is not eligible for receiving any kind of compensation from Ramu.b)Ajay is eligible for receiving damage compensation from Ramu for the loss due to change in market price during the normal course of business.c)There is no breach of contract; hence, no damage compensation is to be received by Ajay.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation such as the failure to deliver a promised asset. A contract is binding and will hold weight if taken to court. To successfully claim a breach of contract, it is imperative to be able to prove that the breach occurred.One may think of a contract breach as either minor or material. A "minor breach" happens when you dont receive an item or service by the due date. A "material breach" is when you receive something that is different from what was stated in the agreement. Further, a breach of contract generally falls under one of two categories: an "actual breach"—when one party refuses to fully perform the terms of the contract, or an "anticipatory breach"—when a party states in advance that it will not be delivering on the terms of the contract.There are many types of damages for breach of contract that you may receive should a breach occur, these being meted out both to deter parties from breaking contracts and to compensate parties should a contract be broken. The main types of damages are compensatory, liquidation, punitive, nominal, and ordinary damages.Compensatory damages are monetary damages that are awarded with the intent of compensating the non-breaching party for any losses suffered as a result of a contract breach. They are not designed to punish the breaching party, but merely make the party that was breached against "whole again", as it is commonly phrased.In the realm of compensatory damages, there are two sub-types of damages, and they are: Expectation damages, these are meant to cover whatever the injured party expected to obtain from the contract. Calculating this is usually straightforward, as it is usually based on the terms of the contract or market values. Consequential damages, these are meant to reimburse an injured party for any indirect damages outside of what was covered in the contract; it includes the loss of business profits stemming from an undelivered or unperformed task. Liquidation damages are damages that are stated specifically in the contract. They can be put in a contract when damages are difficult to foresee, and an estimate is necessary for damages should there be a breach. Thus, such damages are agreed upon by both parties during the contract negotiation. Punitive damages are damages designed to punish a breaching party and deter parties from committing breaches. Such damages are rarely awarded for contract breaches, however, although they may be awarded in some tort or fraud cases that overlap contract case. Ordinary damages are the damages that stem from the ordinary, natural, and probable course of events in the breach of contract.In some cases, monetary damages may be judged insufficient to compensate the aggrieved party. In this case, equitable remedies may be awarded.Q.Ramu agreed to sell cotton to Ajay at Rs. 50 per bag with the payment to be made at the time of delivery, but the market price rose to Rs. 60 per bag at the time of delivery. Ramu refused to sell them not less than Rs. 55 per bag to Ajay. Decidea)Ajay is not eligible for receiving any kind of compensation from Ramu.b)Ajay is eligible for receiving damage compensation from Ramu for the loss due to change in market price during the normal course of business.c)There is no breach of contract; hence, no damage compensation is to be received by Ajay.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation such as the failure to deliver a promised asset. A contract is binding and will hold weight if taken to court. To successfully claim a breach of contract, it is imperative to be able to prove that the breach occurred.One may think of a contract breach as either minor or material. A "minor breach" happens when you dont receive an item or service by the due date. A "material breach" is when you receive something that is different from what was stated in the agreement. Further, a breach of contract generally falls under one of two categories: an "actual breach"—when one party refuses to fully perform the terms of the contract, or an "anticipatory breach"—when a party states in advance that it will not be delivering on the terms of the contract.There are many types of damages for breach of contract that you may receive should a breach occur, these being meted out both to deter parties from breaking contracts and to compensate parties should a contract be broken. The main types of damages are compensatory, liquidation, punitive, nominal, and ordinary damages.Compensatory damages are monetary damages that are awarded with the intent of compensating the non-breaching party for any losses suffered as a result of a contract breach. They are not designed to punish the breaching party, but merely make the party that was breached against "whole again", as it is commonly phrased.In the realm of compensatory damages, there are two sub-types of damages, and they are: Expectation damages, these are meant to cover whatever the injured party expected to obtain from the contract. Calculating this is usually straightforward, as it is usually based on the terms of the contract or market values. Consequential damages, these are meant to reimburse an injured party for any indirect damages outside of what was covered in the contract; it includes the loss of business profits stemming from an undelivered or unperformed task. Liquidation damages are damages that are stated specifically in the contract. They can be put in a contract when damages are difficult to foresee, and an estimate is necessary for damages should there be a breach. Thus, such damages are agreed upon by both parties during the contract negotiation. Punitive damages are damages designed to punish a breaching party and deter parties from committing breaches. Such damages are rarely awarded for contract breaches, however, although they may be awarded in some tort or fraud cases that overlap contract case. Ordinary damages are the damages that stem from the ordinary, natural, and probable course of events in the breach of contract.In some cases, monetary damages may be judged insufficient to compensate the aggrieved party. In this case, equitable remedies may be awarded.Q.Ramu agreed to sell cotton to Ajay at Rs. 50 per bag with the payment to be made at the time of delivery, but the market price rose to Rs. 60 per bag at the time of delivery. Ramu refused to sell them not less than Rs. 55 per bag to Ajay. Decidea)Ajay is not eligible for receiving any kind of compensation from Ramu.b)Ajay is eligible for receiving damage compensation from Ramu for the loss due to change in market price during the normal course of business.c)There is no breach of contract; hence, no damage compensation is to be received by Ajay.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation such as the failure to deliver a promised asset. A contract is binding and will hold weight if taken to court. To successfully claim a breach of contract, it is imperative to be able to prove that the breach occurred.One may think of a contract breach as either minor or material. A "minor breach" happens when you dont receive an item or service by the due date. A "material breach" is when you receive something that is different from what was stated in the agreement. Further, a breach of contract generally falls under one of two categories: an "actual breach"—when one party refuses to fully perform the terms of the contract, or an "anticipatory breach"—when a party states in advance that it will not be delivering on the terms of the contract.There are many types of damages for breach of contract that you may receive should a breach occur, these being meted out both to deter parties from breaking contracts and to compensate parties should a contract be broken. The main types of damages are compensatory, liquidation, punitive, nominal, and ordinary damages.Compensatory damages are monetary damages that are awarded with the intent of compensating the non-breaching party for any losses suffered as a result of a contract breach. They are not designed to punish the breaching party, but merely make the party that was breached against "whole again", as it is commonly phrased.In the realm of compensatory damages, there are two sub-types of damages, and they are: Expectation damages, these are meant to cover whatever the injured party expected to obtain from the contract. Calculating this is usually straightforward, as it is usually based on the terms of the contract or market values. Consequential damages, these are meant to reimburse an injured party for any indirect damages outside of what was covered in the contract; it includes the loss of business profits stemming from an undelivered or unperformed task. Liquidation damages are damages that are stated specifically in the contract. They can be put in a contract when damages are difficult to foresee, and an estimate is necessary for damages should there be a breach. Thus, such damages are agreed upon by both parties during the contract negotiation. Punitive damages are damages designed to punish a breaching party and deter parties from committing breaches. Such damages are rarely awarded for contract breaches, however, although they may be awarded in some tort or fraud cases that overlap contract case. Ordinary damages are the damages that stem from the ordinary, natural, and probable course of events in the breach of contract.In some cases, monetary damages may be judged insufficient to compensate the aggrieved party. In this case, equitable remedies may be awarded.Q.Ramu agreed to sell cotton to Ajay at Rs. 50 per bag with the payment to be made at the time of delivery, but the market price rose to Rs. 60 per bag at the time of delivery. Ramu refused to sell them not less than Rs. 55 per bag to Ajay. Decidea)Ajay is not eligible for receiving any kind of compensation from Ramu.b)Ajay is eligible for receiving damage compensation from Ramu for the loss due to change in market price during the normal course of business.c)There is no breach of contract; hence, no damage compensation is to be received by Ajay.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation such as the failure to deliver a promised asset. A contract is binding and will hold weight if taken to court. To successfully claim a breach of contract, it is imperative to be able to prove that the breach occurred.One may think of a contract breach as either minor or material. A "minor breach" happens when you dont receive an item or service by the due date. A "material breach" is when you receive something that is different from what was stated in the agreement. Further, a breach of contract generally falls under one of two categories: an "actual breach"—when one party refuses to fully perform the terms of the contract, or an "anticipatory breach"—when a party states in advance that it will not be delivering on the terms of the contract.There are many types of damages for breach of contract that you may receive should a breach occur, these being meted out both to deter parties from breaking contracts and to compensate parties should a contract be broken. The main types of damages are compensatory, liquidation, punitive, nominal, and ordinary damages.Compensatory damages are monetary damages that are awarded with the intent of compensating the non-breaching party for any losses suffered as a result of a contract breach. They are not designed to punish the breaching party, but merely make the party that was breached against "whole again", as it is commonly phrased.In the realm of compensatory damages, there are two sub-types of damages, and they are: Expectation damages, these are meant to cover whatever the injured party expected to obtain from the contract. Calculating this is usually straightforward, as it is usually based on the terms of the contract or market values. Consequential damages, these are meant to reimburse an injured party for any indirect damages outside of what was covered in the contract; it includes the loss of business profits stemming from an undelivered or unperformed task. Liquidation damages are damages that are stated specifically in the contract. They can be put in a contract when damages are difficult to foresee, and an estimate is necessary for damages should there be a breach. Thus, such damages are agreed upon by both parties during the contract negotiation. Punitive damages are damages designed to punish a breaching party and deter parties from committing breaches. Such damages are rarely awarded for contract breaches, however, although they may be awarded in some tort or fraud cases that overlap contract case. Ordinary damages are the damages that stem from the ordinary, natural, and probable course of events in the breach of contract.In some cases, monetary damages may be judged insufficient to compensate the aggrieved party. In this case, equitable remedies may be awarded.Q.Ramu agreed to sell cotton to Ajay at Rs. 50 per bag with the payment to be made at the time of delivery, but the market price rose to Rs. 60 per bag at the time of delivery. Ramu refused to sell them not less than Rs. 55 per bag to Ajay. Decidea)Ajay is not eligible for receiving any kind of compensation from Ramu.b)Ajay is eligible for receiving damage compensation from Ramu for the loss due to change in market price during the normal course of business.c)There is no breach of contract; hence, no damage compensation is to be received by Ajay.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice The question is based on the reasoning and arguments, or facts and principles set out in the passage. Some of these principles may not be true in the real or legal sense, yet you must conclusively assume that they are true for the purpose. Please answer the question on the basis of what is stated or implied in the passage. Do not rely on any principle of law other than the ones supplied to you, and do not assume any facts other than those supplied to you when answering the question. Please choose the option that most accurately and comprehensively answers the question.A breach of contract is a violation of any of the agreed-upon terms and conditions of a binding contract. The breach could be anything from a late payment to a more serious violation such as the failure to deliver a promised asset. A contract is binding and will hold weight if taken to court. To successfully claim a breach of contract, it is imperative to be able to prove that the breach occurred.One may think of a contract breach as either minor or material. A "minor breach" happens when you dont receive an item or service by the due date. A "material breach" is when you receive something that is different from what was stated in the agreement. Further, a breach of contract generally falls under one of two categories: an "actual breach"—when one party refuses to fully perform the terms of the contract, or an "anticipatory breach"—when a party states in advance that it will not be delivering on the terms of the contract.There are many types of damages for breach of contract that you may receive should a breach occur, these being meted out both to deter parties from breaking contracts and to compensate parties should a contract be broken. The main types of damages are compensatory, liquidation, punitive, nominal, and ordinary damages.Compensatory damages are monetary damages that are awarded with the intent of compensating the non-breaching party for any losses suffered as a result of a contract breach. They are not designed to punish the breaching party, but merely make the party that was breached against "whole again", as it is commonly phrased.In the realm of compensatory damages, there are two sub-types of damages, and they are: Expectation damages, these are meant to cover whatever the injured party expected to obtain from the contract. Calculating this is usually straightforward, as it is usually based on the terms of the contract or market values. Consequential damages, these are meant to reimburse an injured party for any indirect damages outside of what was covered in the contract; it includes the loss of business profits stemming from an undelivered or unperformed task. Liquidation damages are damages that are stated specifically in the contract. They can be put in a contract when damages are difficult to foresee, and an estimate is necessary for damages should there be a breach. Thus, such damages are agreed upon by both parties during the contract negotiation. Punitive damages are damages designed to punish a breaching party and deter parties from committing breaches. Such damages are rarely awarded for contract breaches, however, although they may be awarded in some tort or fraud cases that overlap contract case. Ordinary damages are the damages that stem from the ordinary, natural, and probable course of events in the breach of contract.In some cases, monetary damages may be judged insufficient to compensate the aggrieved party. In this case, equitable remedies may be awarded.Q.Ramu agreed to sell cotton to Ajay at Rs. 50 per bag with the payment to be made at the time of delivery, but the market price rose to Rs. 60 per bag at the time of delivery. Ramu refused to sell them not less than Rs. 55 per bag to Ajay. Decidea)Ajay is not eligible for receiving any kind of compensation from Ramu.b)Ajay is eligible for receiving damage compensation from Ramu for the loss due to change in market price during the normal course of business.c)There is no breach of contract; hence, no damage compensation is to be received by Ajay.d)None of the aboveCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CLAT tests.