REMEDIES FOR BREACH OF CONTRACT

1. Rescission. 3. Quantum Merit. 5. Injunction.

2. Damages. 4. Specific Performance.

1. Rescission

 When a contract is broken by one party, the other party may treat the contract as

rescinded. In such a case, the other party absolved of all his obligations under the

contract, and is entitled to compensation for any damages that he might have suffered.

 Example-A promise B to supply 10 bags of cement on a certain day. B agrees to pay the

price after the receipt of the goods. A does not supply the goods. B is discharged from

liability to pay the price.

 When the contract is voidable or terminable by the plaintiff.

 However as per section 27 (2) of the act, the court may refuse to rescind the contracts in

the following cases:

 Where the plaintiff has expressly or impliedly ratified the contract; or

2. Damages

 Damages are a monetary compensation allowed to the injured party for the loss or injury

suffered by him as aresult of the breach of contract.

 The fundamental principal underlying damages is not punishment but compensation.

 As a general rule “compensation must be commensurate with the injury or loss sustained,

arising naturally from the breach”.

 If actual loss is not proved, no damages will be awarded.

Kinds of Damages

i. General and special Damages iii. Exemplary Damages

.ii. Nominal Damages iv. Liquidated and unliquidated damages

3. Quantum Meruit:-
 Quantum meruit means, As much as he deserved or earned.

 When a person has begun the work and before he could complete it, the other party

terminate the contract or does something, which makes it impossible for other party to

complete the contract, he can claim for the work under the contract.

 He may also recover the value of the work done where the further performance of the

contract becomes impossible.

4. Specific Performance

 Where damages are not an adequate remedy in the case of breach of contract, the court

may in its discretion on a suit for specific performance direct in a party breach, to carry

out his promise according to the terms of the contract.

i. When specific performance may be enforced:

 Where there is no standard for ascertaining the actual damages caused by the nonperformer or

ii. When Specific Performance may not be enforced:

 A contract which is determinable in nature;

 The contract is of a personal nature e.g. Contract to marry.

 The court cannot supervise its carrying out, e.g. Building contract.

 The contract is made by trustee in breach of their trust.

5. Injunction

 Injunction means demanding court‟s stay order.

 Injunction means an order of the court which prohibits a person to do Particular act.

 Where a party to a contract does something which the promised not to do, the court may

issue an order prohibiting him from doing so.

Example-W agreed to sing at L‟s there only during the contract period. During the contract period, W
made contract with Z to sing at another theater and refused to perform the contract with L. it was held
that W could be restrained by injunction from signing for Z