Question

A stipulation in a bond for payment of compound interest on failure to pay simple interest at the same rate as was payable upon the principal is not a penalty within the meaning of:

• A. Section 74 of the Indian Contract Act, 1872
• B. Section 75 of the Indian Contract Act, 1872
• C. Section 76 of the Indian Contract Act, 1872
• D. None of the above

Answer 1

Answer: (A)

Section 74 of the Indian Contract Act, 1872

Answer 2

The correct option is (A):Section 74 of the Indian Contract Act, 1872.