Question

Special damages can be claimed ___________________.

• A. Invariably in all the cases
• B. Only when special circumstances are brought to the knowledge of the defendant
• C. To punish the guilty party
• D. To deter a person from committing a breach of such contract

Answer 1

The correct option is B Only when special circumstances are brought to the knowledge of the defendant

Special Damages are the consequential damages caused by the breach of contract due to the existence of special circumstances. Such damages are awarded by the courts only when at the time of making a contract, these special circumstances were forseeable by the party committing the breach as well as brought to the notice of the aggrieved party. If the special circumstances was already in the knowledge of the party responsible for the breach of contract, the formality of communicating them to him may not be necessary.