Multiple choice

B, a broker at Delhi, on the order of A contracts with C for the purchase of 20 kg of iron-ore. Afterwards A refuses to receive the iron-ore, and C sues B. B informs A who rejects the contract altogether. B defends, but unsuccessfully, and has to pay damages and costs and incurs expenses. A is liable to B for

  1. damages only

  2. costs only

  3. damages, costs and expenses

  4. none of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 A is liable to pay to B the damages suffered due to rejection of contract, costs incurred on contract for purchase of iron-ore and expenses incurred by B to defend himself when sued by C. It is total error on part of A and B is sued by C, because of rejection of contract by A.

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