Compensation for Breach of Contract Quiz

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What must be taken into account when estimating the loss or damage arising from a breach of contract?

The party that caused the breach of contract

The means of remedying the inconvenience caused by the non-performance of the contract (correct)

The location where the breach of contract occurred

The date when the breach of contract took place

Under Section 74, what is a party entitled to receive if a contract stipulates a sum to be paid in case of breach?

Compensation based on the actual damages incurred

No compensation is provided in such cases

Reasonable compensation not exceeding the named amount (correct)

Double the named amount as compensation

What does Section 75 of the Arbitration and Conciliation Act 1996 state regarding rightful rescission of a contract?

Compensation is only awarded if substantial damage is proven

Entitled to compensation for damages sustained from non-fulfillment (correct)

Not entitled to any compensation

Entitled to double the contract value as compensation

What does the Arbitration and Conciliation Act 1996 emphasize as a preferred option for settling commercial disputes globally?

Arbitration Signup and view all the answers

When did the Arbitration and Conciliation Act 1996 come into effect?

25.01.1996 Signup and view all the answers

When was the Arbitration and Conciliation Act 1996 amended?

Act 3 of 2016 Signup and view all the answers

What is one key feature of the amendment act introduced by Act 33 of 2019?

Establishment of an independent body called the Conciliation Council of India Signup and view all the answers

What does the term 'Arbitration' mean according to the text?

Any arbitration, regardless of being administered by a permanent arbitral institution Signup and view all the answers

How long is the time limit fixed for filing written claim and defense before an arbitral tribunal?

6 weeks Signup and view all the answers

Under Section 8 of the ARBITRATION AND CONCILIATION ACT 1996, what must a judicial authority do when an arbitration agreement exists?

Refer the parties to arbitration Signup and view all the answers

What is required for an arbitration agreement to be valid according to the text?

It must be in writing Signup and view all the answers

What is one aspect of the composition of an arbitral tribunal according to Sections 10 to 12 of ARBITRATION AND CONCILIATION ACT 1996?

The parties can decide on the number of arbitrators Signup and view all the answers

What is the role of the conciliator?

Assisting parties to reach an amicable settlement Signup and view all the answers

What is the status and effect of a settlement agreement according to the text?

It has a similar status as an arbitral award Signup and view all the answers

When is a settlement agreement considered final and binding?

When it is signed by the parties Signup and view all the answers

What happens if parties reach an agreement on a settlement of the dispute?

They can draw up and sign a written settlement agreement Signup and view all the answers

Are conciliators bound by the Code of Civil Procedure?

No, they are not bound by it Signup and view all the answers

What is the status of proposals made by the conciliator for a settlement?

They are not required to be in writing or accompanied by reasons Signup and view all the answers

What is one key feature of the Arbitration and Conciliation Act 1996 amendment introduced by Act 33 of 2019?

Establishment of an independent body called the Arbitration Council of India Signup and view all the answers

Under the Arbitration and Conciliation Act 1996, what is the time restriction for arbitral tribunals to make their award in international commercial arbitrations?

12 months Signup and view all the answers

According to Section 7 of the Arbitration and Conciliation Act 1996, what is required for an arbitration agreement to be valid?

In writing Signup and view all the answers

What does Section 8 of the Arbitration and Conciliation Act 1996 state about referring parties to arbitration when there is an arbitration agreement?

The judicial authority should refer the parties to arbitration Signup and view all the answers

What must a party do if there is an arbitration agreement but the same issue is pending before a judicial authority?

Commence or continue arbitration and make an arbitration award Signup and view all the answers

What is the role of the conciliator according to Sec-67 of the ARBITRATION AND CONCILIATION ACT 1996?

To assist the parties in reaching an amicable settlement. Signup and view all the answers

What status and effect does a settlement agreement have according to Sec-74 of the ARBITRATION AND CONCILIATION ACT 1996?

It is final and binding on the parties like an arbitral award. Signup and view all the answers

Under Sec-73, what happens when parties sign a settlement agreement?

The agreement becomes legally enforceable and binding on the parties. Signup and view all the answers

What is the similarity between a settlement agreement and an arbitral award under Sec-74 of the ARBITRATION AND CONCILIATION ACT 1996?

Both have the same status and effect on the substance of the dispute. Signup and view all the answers

According to Sec-66, what legal provisions bind the conciliator in conciliation proceedings?

The Code of Civil Procedure. Signup and view all the answers

What is the entitlement of a party who rightfully rescinds a contract according to the ARBITRATION AND CONCILIATION ACT 1996?

Reasonable compensation for any damage sustained through non-fulfillment of the contract Signup and view all the answers

What is the status of a settlement agreement as per the ARBITRATION AND CONCILIATION ACT 1996?

Final and binding Signup and view all the answers

When estimating loss or damage from a breach of contract, what must be considered according to the text?

Means available for remedying the inconvenience caused Signup and view all the answers

Under what conditions is a complaining party entitled to receive reasonable compensation under Section 74 of the ARBITRATION AND CONCILIATION ACT 1996?

Regardless of actual damage or loss proved Signup and view all the answers

What is one key feature of arbitration as emphasized in the ARBITRATION AND CONCILIATION ACT 1996?

Preferred option for settling commercial disputes globally Signup and view all the answers

How can conciliation proceedings be terminated according to the text?

By the signing of the settlement agreement by the conciliator Signup and view all the answers

When can conciliation proceedings be terminated by a written declaration of the conciliator according to the text?

After consulting with the parties and finding further efforts at conciliation are no longer justified Signup and view all the answers

What is a key aspect of terminating conciliation according to the ARBITRATION AND CONCILIATION ACT 1996?

A written declaration by parties is mandatory for termination Signup and view all the answers

What action should parties avoid during conciliation proceedings as per the text?

Initiating arbitral or judicial proceedings related to the dispute Signup and view all the answers

How does a misplaced comma in a contract impact its meaning according to the text?

It may subtly change the intended meaning of a complex business arrangement Signup and view all the answers

What is the status of an arbitration agreement in case of the death of a party according to the text?

Not discharged, remains enforceable Signup and view all the answers

How can conciliation proceedings commence according to Section 62 of the Arbitration and Conciliation Act 1996?

By written invitation and acceptance Signup and view all the answers

Under Section 40 of the Act, what happens to the mandate of an arbitrator in case of the death of a party who appointed them?

Arbitrator continues despite party's death Signup and view all the answers

What is the consequence if a party initiating conciliation does not receive a reply within thirty days, as per Section 62 of the Act?

The invitation is considered rejected Signup and view all the answers

What is the effect of an order passed in appeal under Section 3 of the Act on further appeals?

No second appeal allowed, but appeal to Supreme Court is possible Signup and view all the answers

What happens if the parties settle a dispute during arbitral proceedings according to the text?

The arbitrator must terminate the proceedings and may record the settlement in the form of an Arbitral Award. Signup and view all the answers

What is the status and effect of an Arbitration award on agreed terms as per the text?

It has the same status and effect as any other arbitral award. Signup and view all the answers

What should be included in an Arbitration award unless it is based on agreed terms according to the text?

The reasons upon which it is based. Signup and view all the answers

What happens if an arbitral award is not made within six months according to the text?

The provisions of section 29A apply with regard to extension of the period. Signup and view all the answers

What may an arbitrator do during arbitral proceedings to encourage settlement according to the text?

Use mediation or conciliation. Signup and view all the answers

What is the significance of Section 19 of the Arbitration and Conciliation Act 1996 in terms of the rules of procedure?

It allows the Arbitrator to determine the admissibility and weight of evidence at their discretion. Signup and view all the answers

Under Section 20 of the Arbitration and Conciliation Act 1996, how is the place of arbitration determined?

The place is determined by the Arbitrator based on the circumstances and parties' convenience if no agreement is reached. Signup and view all the answers

What is the requirement under Section 23 for respondents in an arbitral proceeding?

To submit all relevant documents along with their statement. Signup and view all the answers

What does Section 18 of the Arbitration and Conciliation Act 1996 emphasize regarding the treatment of parties?

Parties shall be treated equally and provided with a full opportunity to present their case. Signup and view all the answers

What happens if parties do not agree on a place for arbitration according to Section 20?

The Arbitrator determines the place based on circumstances and parties' convenience. Signup and view all the answers

In terms of the procedure to be followed during arbitral proceedings, what happens if there is no agreement between parties under Section 19?

The Arbitrator may conduct proceedings as they deem appropriate including determining admissibility and weight of evidence. Signup and view all the answers

What is the role of parties in determining the rules of procedure according to Section 19?

Parties are free to agree on the procedure to be followed by the Arbitrator. Signup and view all the answers

Under Section 20, what freedom do parties have regarding the place of arbitration?

'Parties can freely agree on the place of arbitration.' Signup and view all the answers

'What is required from claimants according to Section 23 during an arbitral proceeding?'

'Claimants shall submit a statement of facts supporting their claim along with relevant documents.' Signup and view all the answers