Multiple choice

Assertion (A): Even when there is no actual loss to a party on the breach of a contract; nominal compensation will be paid. Reason (R): There is a right, so there should be a remedy.

  1. (A) is right, but (R) is wrong.

  2. (A) is wrong, but (R) is right.

  3. (A) and (R) both are right and (R) is the right explanation of (A).

  4. (A) and (R) both are right, but (R) is not the explanation of (A).
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Nominal damages are awarded where the plantiff has proved that there has been a breach of contract, but he/she has not suffered any real loss. It is awarded just to establish the right to decree for the breach of contract.

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