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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?
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Which one of the following is relevant in normal circumstances in dete...
Relevant Factor in Determining Damages from Breach of Contract
Market Price and Contract Price
The relevant factor in determining damages from breach of contract is the difference between market price and contract price. When a party breaches a contract, the non-breaching party is entitled to damages that will put them in the same position they would have been in had the contract been fully performed. The damages awarded should compensate the non-breaching party for the loss suffered as a result of the breach.
The market price and contract price are significant factors because they determine the value of the goods or services that were promised under the contract. If the market price of the goods or services has increased since the contract was made, the non-breaching party may be able to recover the difference between the contract price and the current market price.
For example, if Party A agrees to sell Party B a car for $10,000, but breaches the contract and fails to deliver the car, Party B may be able to recover damages equal to the difference between the contract price and the current market price of the car. If the car is now worth $12,000, Party B may be entitled to recover $2,000 in damages.
Conclusion
In conclusion, the difference between market price and contract price is the relevant factor in determining damages from breach of contract. This factor takes into account the value of the goods or services that were promised under the contract, and compensates the non-breaching party for any loss suffered as a result of the breach.
Market Price and Contract Price
The relevant factor in determining damages from breach of contract is the difference between market price and contract price. When a party breaches a contract, the non-breaching party is entitled to damages that will put them in the same position they would have been in had the contract been fully performed. The damages awarded should compensate the non-breaching party for the loss suffered as a result of the breach.
The market price and contract price are significant factors because they determine the value of the goods or services that were promised under the contract. If the market price of the goods or services has increased since the contract was made, the non-breaching party may be able to recover the difference between the contract price and the current market price.
For example, if Party A agrees to sell Party B a car for $10,000, but breaches the contract and fails to deliver the car, Party B may be able to recover damages equal to the difference between the contract price and the current market price of the car. If the car is now worth $12,000, Party B may be entitled to recover $2,000 in damages.
Conclusion
In conclusion, the difference between market price and contract price is the relevant factor in determining damages from breach of contract. This factor takes into account the value of the goods or services that were promised under the contract, and compensates the non-breaching party for any loss suffered as a result of the breach.
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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 2024 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 2024 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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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?, a detailed solution 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? has been provided alongside types of 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? theory, EduRev gives you an
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