All India Bar Examination (AIBE) 4-IV Previous Year Question Papers with Answers

The correct option is D: Both (a) and (b).

A suit for damages for breach of contract can be filed at a place where the contract was made or where the contract was to be performed or breach occurred. This is based on the following legal provisions:

Section 20 of the Code of Civil Procedure, 1908, states that a suit can be instituted in a court within the local limits of whose jurisdiction the defendant resides or carries on business or personally works for gain, or where the cause of action wholly or in part arises.

Section 16 of the Code of Civil Procedure, 1908, states that a suit for compensation for wrongs to immovable property shall be instituted in the court within the local limits of whose jurisdiction the property is situated.

Section 18 of the Indian Contract Act, 1872, states that where a contract is made at one place and is to be performed at another, then it is deemed to have been made at both places.

Therefore, depending on the nature and terms of the contract, a suit for damages for breach of contract can be filed at either of the places where the contract was made or where it was to be performed or breach occurred. For example, if A in Delhi agrees to sell goods to B in Mumbai and delivers them at Mumbai, then B can file a suit for damages against A either in Delhi or in Mumbai if A breaches the contract. However, if A agrees to sell goods to B in Delhi and delivers them at Delhi, then B can only file a suit for damages against A in Delhi if A breaches the contract.