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Which one of the following is relevant in normal circumstances in determining the amount of damages from breach of contract ?
- a)Normally expected loss
- b)Difference between market price and contract price
- c)Sudden closure price of production
- d)Additional expenses for procuring the goods
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which one of the following is relevant in normal circumstances in dete...
Explanation:
When there is a breach of contract, the party who has suffered the loss is entitled to claim damages. The amount of damages is calculated based on several factors, including the actual loss suffered by the aggrieved party. The following are the factors that are relevant in determining the amount of damages from a breach of contract:
Normally expected loss:
The normally expected loss refers to the loss that the aggrieved party would have suffered had the contract been performed as per the terms agreed upon. This factor is relevant in determining the amount of damages only in exceptional cases where the actual loss suffered by the aggrieved party cannot be quantified.
Difference between market price and contract price:
The difference between the market price and contract price is the most relevant factor in determining the amount of damages from a breach of contract. This factor is relevant in cases where the aggrieved party has to procure the goods or services from another source at a higher price due to the breach of contract. The amount of damages in such cases is calculated by subtracting the contract price from the market price of the goods or services.
Sudden closure price of production:
The sudden closure price of production is not relevant in determining the amount of damages from a breach of contract. This factor refers to the cost that the aggrieved party would have incurred had they continued production as per the terms of the contract. However, this factor is only relevant in exceptional cases where the aggrieved party is engaged in a production activity.
Additional expenses for procuring the goods:
The additional expenses for procuring the goods or services from another source due to the breach of contract is a relevant factor in determining the amount of damages. This factor is relevant in cases where the aggrieved party has to incur additional expenses such as shipping, handling, and transportation costs to procure the goods or services from another source.
In conclusion, the difference between the market price and contract price is the most relevant factor in determining the amount of damages from a breach of contract.
When there is a breach of contract, the party who has suffered the loss is entitled to claim damages. The amount of damages is calculated based on several factors, including the actual loss suffered by the aggrieved party. The following are the factors that are relevant in determining the amount of damages from a breach of contract:
Normally expected loss:
The normally expected loss refers to the loss that the aggrieved party would have suffered had the contract been performed as per the terms agreed upon. This factor is relevant in determining the amount of damages only in exceptional cases where the actual loss suffered by the aggrieved party cannot be quantified.
Difference between market price and contract price:
The difference between the market price and contract price is the most relevant factor in determining the amount of damages from a breach of contract. This factor is relevant in cases where the aggrieved party has to procure the goods or services from another source at a higher price due to the breach of contract. The amount of damages in such cases is calculated by subtracting the contract price from the market price of the goods or services.
Sudden closure price of production:
The sudden closure price of production is not relevant in determining the amount of damages from a breach of contract. This factor refers to the cost that the aggrieved party would have incurred had they continued production as per the terms of the contract. However, this factor is only relevant in exceptional cases where the aggrieved party is engaged in a production activity.
Additional expenses for procuring the goods:
The additional expenses for procuring the goods or services from another source due to the breach of contract is a relevant factor in determining the amount of damages. This factor is relevant in cases where the aggrieved party has to incur additional expenses such as shipping, handling, and transportation costs to procure the goods or services from another source.
In conclusion, the difference between the market price and contract price is the most relevant factor in determining the amount of damages from a breach of contract.
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Which one of the following is relevant in normal circumstances in determining the amount of damages from breach of contract ?a)Normally expected lossb)Difference between market price and contract pricec)Sudden closure price of productiond)Additional expenses for procuring the goodsCorrect answer is option 'B'. Can you explain this answer?
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Which one of the following is relevant in normal circumstances in determining the amount of damages from breach of contract ?a)Normally expected lossb)Difference between market price and contract pricec)Sudden closure price of productiond)Additional expenses for procuring the goodsCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which one of the following is relevant in normal circumstances in determining the amount of damages from breach of contract ?a)Normally expected lossb)Difference between market price and contract pricec)Sudden closure price of productiond)Additional expenses for procuring the goodsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following is relevant in normal circumstances in determining the amount of damages from breach of contract ?a)Normally expected lossb)Difference between market price and contract pricec)Sudden closure price of productiond)Additional expenses for procuring the goodsCorrect answer is option 'B'. Can you explain this answer?.
Which one of the following is relevant in normal circumstances in determining the amount of damages from breach of contract ?a)Normally expected lossb)Difference between market price and contract pricec)Sudden closure price of productiond)Additional expenses for procuring the goodsCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which one of the following is relevant in normal circumstances in determining the amount of damages from breach of contract ?a)Normally expected lossb)Difference between market price and contract pricec)Sudden closure price of productiond)Additional expenses for procuring the goodsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which one of the following is relevant in normal circumstances in determining the amount of damages from breach of contract ?a)Normally expected lossb)Difference between market price and contract pricec)Sudden closure price of productiond)Additional expenses for procuring the goodsCorrect answer is option 'B'. Can you explain this answer?.
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