Contract Breach Compensation Quiz

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

The weather conditions at the time of the breach

The date when the breach of contract occurred

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

The location where the breach of contract happened

What is a party entitled to receive in case of a breach of contract where a penalty is stipulated?

Double the amount named as penalty

Reasonable compensation not exceeding the amount named as penalty (correct)

No compensation

Triple the amount named as penalty

What does the ARBITRATION AND CONCILIATION ACT, 1996 focus on?

Settling disputes through court trials

Quick enforcement of contracts globally (correct)

Avoiding dispute resolution mechanisms

Resolving disputes through social media platforms

When did the Arbitration & Conciliation Act come into effect?

25.01.1996 Signup and view all the answers

What happens when a person rightfully rescinds a contract?

They are entitled to receive compensation for any damage due to non-fulfillment Signup and view all the answers

What was the amendment year for the Arbitration & Conciliation Act?

2016 Signup and view all the answers

What is the key feature of the amendment act mentioned in the text?

Establishment of Arbitration Council of India Signup and view all the answers

What does 'Arbitration' refer to?

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

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

It must be in writing and can only be in the form of a separate agreement Signup and view all the answers

Under section 8 of the Act, what power does a judicial authority have regarding arbitration agreements?

The authority must refer parties to arbitration if an arbitration agreement exists Signup and view all the answers

What is emphasized in the composition of an arbitral tribunal based on sections 10 to 12?

Proper constitution and setup of the arbitral tribunal Signup and view all the answers

What change was introduced regarding time restrictions for arbitral tribunals under the amendment act?

Removing the time restriction for international commercial arbitrations Signup and view all the answers

What is the role of the conciliator as per section 67 of the Arbitration and Conciliation Act 1996?

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

In conciliation proceedings, when can the conciliator propose a settlement according to section 67?

At any stage of the proceedings Signup and view all the answers

How are settlement proposals made by the conciliator required to be communicated according to section 67?

Verbally without reasons stated Signup and view all the answers

According to section 73, when does a settlement agreement become final and binding on the parties?

Once signed by both parties Signup and view all the answers

What status does a settlement agreement hold as per section 74 of the Arbitration and Conciliation Act 1996?

Same as an arbitral award on agreed terms Signup and view all the answers

Under which section of the Arbitration and Conciliation Act 1996 does a settlement agreement have similar effects to an arbitral award?

Section 74 Signup and view all the answers

What is the entitlement of a person who rightfully rescinds a contract according to the text?

Entitled to reasonable compensation for any damage sustained Signup and view all the answers

In the context of breach of contract, what compensation is a party entitled to receive if a sum is named in the contract for such breach?

Reasonable compensation not exceeding the sum named Signup and view all the answers

What must be considered when estimating loss or damage from a breach of contract?

The inconvenience caused by non-performance Signup and view all the answers

Under what circumstances is a party entitled to receive compensation for breach of contract regardless of proving actual loss?

If there is a penalty clause in the contract Signup and view all the answers

What is a preferred option globally for settling commercial disputes quickly?

Arbitration for enforcement of contracts Signup and view all the answers

In conciliation proceedings, under which section of the Arbitration and Conciliation Act 1996 can the conciliator make proposals for a settlement of the dispute?

Section 67 Signup and view all the answers

What status does a settlement agreement hold as per the Arbitration and Conciliation Act 1996?

Similar to an arbitral award Signup and view all the answers

If the parties reach an agreement on a settlement of the dispute, which section of the Act requires that they draw up and sign a written settlement agreement?

Section 73 Signup and view all the answers

What type of proposals can the conciliator make for a settlement of the dispute in conciliation proceedings?

Proposals without a statement of reasons Signup and view all the answers

Under which section does the conciliator authenticate the settlement agreement reached by the parties?

Section 73 Signup and view all the answers

What happens if the party initiating conciliation does not receive a reply within thirty days from sending the invitation?

The conciliation proceedings will be terminated. Signup and view all the answers

Can an arbitration agreement be discharged by the death of a party involved?

No, it remains enforceable by or against the legal representative of the deceased. Signup and view all the answers

What is the effect of disclosing the arbitral proceedings except for the award?

It violates the confidentiality obligation. Signup and view all the answers

When can conciliation proceedings commence based on Section 62?

When the other party accepts in writing the invitation to conciliate. Signup and view all the answers

What is the course of action if one party rejects the invitation to conciliation based on Section 62?

The initiating party can elect to treat it as a rejection. Signup and view all the answers

How can conciliation proceedings be terminated as per the text?

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

What action must a conciliator take for the termination of conciliation proceedings to be justified?

Conclude that further conciliation efforts are no longer justified Signup and view all the answers

What can result from a party unilaterally terminating conciliation proceedings?

Creating a breach of contract situation Signup and view all the answers

What is the significance of not initiating arbitral or judicial proceedings during conciliation?

To prevent interruptions to the conciliation process Signup and view all the answers

How does a company primarily communicate, as emphasized in the text?

By drafting detailed contracts Signup and view all the answers

What happens if the award is not made within six months?

Section 29A provisions for extension of the period apply Signup and view all the answers

Under what circumstances does an arbitrator terminate arbitral proceedings?

If the parties reach a settlement during the proceedings Signup and view all the answers

What is required to be included in an arbitral award under section 31?

Signed by arbitrator/arbitrators and reasons for the decision Signup and view all the answers

When can an interim arbitral award be made by an arbitrator?

At any point during the proceedings Signup and view all the answers

What is the status of an arbitration award on agreed terms?

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

What is the time limit to file a written claim and defense before an arbitral tribunal according to the amendment act?

6 months Signup and view all the answers

Under the Arbitration and Conciliation Act 1996, what does 'Arbitration' encompass?

Any arbitration administered or not by permanent arbitral institution Signup and view all the answers

What is required for an arbitration agreement to be considered valid?

Must be in writing Signup and view all the answers

Which section of the Arbitration and Conciliation Act 1996 deals with the power of judicial authorities to refer parties to arbitration when an arbitration agreement exists?

Section 8 Signup and view all the answers

What change was made regarding time restrictions for arbitral tribunals in international commercial arbitrations according to the amendment act?

Time restriction completely removed Signup and view all the answers

According to section 19 of the ARBITRATION AND CONCILIATION ACT 1996, what is the stance of the arbitral tribunal on the Code of Civil Procedure and Indian Evidence Act?

They are not bound by the Code of Civil Procedure or Indian Evidence Act. Signup and view all the answers

In accordance with section 18, how are parties expected to be treated during an arbitral proceeding?

Equally, with each party given a full opportunity to present their case. Signup and view all the answers

What power does the Arbitrator have in determining the admissibility, relevance, and weight of evidence, as per section 19?

The power to determine admissibility, relevance, materiality, and weight of any evidence. Signup and view all the answers

According to section 23, what are parties required to submit within the specified time period?

A statement of claim with relevant facts and supporting documents. Signup and view all the answers

In relation to the place of arbitration, what happens if parties fail to agree according to section 20?

The arbitrator chooses a place based on case circumstances and party convenience. Signup and view all the answers

Under section 23, what additional action can a respondent take besides submitting a statement of defense?

Submit a counterclaim or plead a set-off if it falls within the scope of the arbitration agreement. Signup and view all the answers

If parties cannot agree on the place of arbitration according to section 20, who ultimately determines it?

Arbitrator as deemed appropriate considering circumstances and party convenience. Signup and view all the answers

What is the significance of parties being free to agree on the procedure for conducting proceedings as per section 19?

'Arbitration' refers to an agreement on how proceedings should be conducted. Signup and view all the answers