IAI Actuarial Core Principles · Business Management · Implied terms, exclusion of liability, contractual remedies and damages

Vikram Pensions Ltd hires Ishaan, a data vendor, to supply a mortality dataset by a fixed date. Ishaan knows only that the data is for 'internal analysis'. Vikram privately plans to use it to bid for an exceptionally lucrative government annuity tender, and loses the tender because of late delivery, with a profit of Rs 50 lakh. Ishaan was never told of the tender. Which view is most consistent with the Indian rule on remoteness?

Vikram is unlikely to recover the tender profit because it was neither a natural consequence of late data delivery nor known to both parties when contracting. Ordinary losses from the delay may still be claimed, but undisclosed special circumstances make the exceptional loss too remote.

1. AVikram can recover the Rs 50 lakh because the loss was caused by the delay
2. BVikram can recover the Rs 50 lakh because Ishaan is a professional and should have foreseen all uses
3. CVikram can recover nothing for the delay even if ordinary losses occurred
4. DVikram can recover Rs 25 lakh as a compromise under the Act
5. Vikram is unlikely to recover the tender profit, as it was neither natural nor known to both parties, though ordinary loss from delay may be claimedCorrect