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To the rule that compensation cannot exceed the stipulated sum, an exception exists where a bond is given to the Government for performance of a public duty; in that case:
AHalf the sum is payable
BOnly actual loss is payable
CNo sum is payable
DThe whole sum mentioned in the bond is payable on breach
Answer & Solution
Correct answer: D. The whole sum mentioned in the bond is payable on breach
Where a bond is given to the Central or State Government for performance of a public duty, the whole sum named is payable on breach, an exception to Section 74.
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