Multiple choice

When a contract has been broken, the party who suffers by such breach is entitled to receive damages from the party who has broken the contract. This type of damage is

  1. liquidated damage

  2. compensatory damage

  3. penal damage

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Liquidated damages are those, which are paid for breach of contract. The compensatory damages are paid as compensation. The penal damages are paid as a penalty. Thus (1) is the correct answer.

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