A contracts to let his ship to B for a year, from the first of January, for a certain price. Freights rise, and, on the first of January, the hire obtainable for the ship is higher than the contract price. A breaks his promise. He must pay to B, by way of compensation, a sum equal to the difference between the contract price and the price for which B could hire a similar ship for a year on and form the first January.

The Indian Contract Act of 1872 is a legal framework that regulates contracts in India and is applicable to all states except Jammu & Kashmir. It was first published on April 25, 1872, and has 266 sections. The act is based on English Common Law and has been amended several times to keep up with changing economic conditions.  The act defines a contract as an agreement that is enforceable by law. It also defines an agreement as every promise and every set of promises that form the consideration for each other. A valid contract is formed when certain essential elements are present,... Show more

The Indian Contract Act of 1872 is a legal framework that regulates contracts in India and is applicable to all states except Jammu & Kashmir. It was first published on April 25, 1872, and has 266 sections. The act is based on English Common Law and has been amended several times to keep up with changing economic conditions. 

The act defines a contract as an agreement that is enforceable by law. It also defines an agreement as every promise and every set of promises that form the consideration for each other. A valid contract is formed when certain essential elements are present, including:
Offer and acceptance
Lawful consideration
Capacity to contract
Free consent
Lawful object
Certainty of terms 

All the signing parties must consider getting something in return in the form of rights, profits, interests, etc.. A contract will be deemed illegal if it is unlawful, can challenge or attack any section of any law, cause harm to any individual, or if the Court considers it to be immoral. 
The act covers the following topics: What is a contract, Essentials of a contract, Types of contract based on validity, Types of contract based on formation, and Types of contract based on performance.
 

Related Test: Transfer of Property Act, 1872 Practice Test

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