Remedies for Breach of contract

Sumi C.D S2 MBA SMBS

Breach of contract
When one of the parties of a contract fails to perform his part of contract he is said to have commited breach of contract.

Remedies for breach of contract

Recession of the contract. Suit for damages. Suit for specific performance of the contract. Suit for injunction. Suit upon quantum meruit.

1.Recession of a contract
When all or some of the terms of the contract are cancelled. Eg: A promises to supply certain goods to B for price. A does not supply the goods. B is discharge from his liability to pay the price.

2.Suit for damages

Damages means monitary compensation payable by the defaulting party to injured party in the event of breach of contract

3.Suit for Specific performance

Specific performance will be granted in those cases where compensation will not be an adequate remedy or actual damages cannot accurately be assessed and it will usually be granted in contracts connected with purchase of land or house.

4.Suit for injunction

It is an order of court restraining or preventing a person from doing a particular act.

5.Suit upon quantum meruit

When a person has done some work under a contract and the other party repundiates the contract or some event happen which makes the further performance of the contract impossible,then the party who has performed the work can claim remuneration for the work he has already done. This is called doctrine of quantum meruit.

Different types of damages

General or ordinary damages Special damages Exemplary damages Nominal damages Penalty and liquidated damages

1.General or ordinary damages

When a contract has been broken the injured party may sustain some damages or loss due to breach of contract. Such damages which arise naturally in the usual course of things from the breach itself are called ordinary or general damages.

2.Special damages
These damages are those damages which arise from the breach of contract under special circumstances.

3.Exemplary or vindictive damages

These damages are awarded with a view to punish the defaulting party who injured the feelings of the others and not solely with the idea of awarding compensation to the injured party.

4. Nominal damages
Nominal damages are awarded in the cases where the injured party is able to prove a breach of contract, but he has not suffered any real and substantial loss.

4.Penalty and liquidated damages

Liquidated damages If the amount fixed is a genuine pre-estimate of the loss in case of breach it is known as liquidated damages. It is a sum fixed by the parties in the contract itself. Penalty Where the amount fixed in the contract is larger and grossly disproportionate to the loss, it is called penalty.

Thank youuu.