Remedies for the Breach of

Contract
In any contract, there are rights and obligation to
both the parties under contract.
Remedy means it is the way out given by law for
the enforcement of a right by the injured party.
When the contract is broken, the injured party
(the party at loss) has one more of the following
remedies

a)
Rescission of contract
b)
Suit for Damages
c)
Suit upon Quantum Meruit
d)
Suit for specific performance of contract
e) Suit for Injunction
Business Laws-Prof.Benny Pappachen
 a- Rescission of Contract (sec 39)
(Cancellation of Contract)

If the contract is broken by one party, the other

party can file a case (sue) against other party in
the court to treat the contract as rescinded
(cancelled) & refusing any further performance.
Ex: Abhijit promised to supply 100 bags of cement
to Sujit by 10th Sept. But on 5th Sept. Abhijit refused
to supply cement. Therefore Sujit can file a case
against Abhijit or he can breach the contract and
need not to pay anything to Abhijit.
Business Laws-Prof.Benny Pappachen
 b) Suit for Damages( sec 73)

b) Suit for Damages: When one party rescinds

(cancels) the contract, there is possibility that, the
other party may incur losses.
-

Damages are the monetary compensation allowed

-to injured party by the court for the loss.

Ordinary Damage: can claim nominal damage, which

will be equal to the amount of loss.

Business Laws-Prof.Benny Pappachen

 b) Suit for Damages

-
Special Damage : This damage is aroused due
to breach of contract under special
circumstances.
The compensation can be awarded due to
indirect loss faced by the injured party

Business Laws-Prof.Benny Pappachen

 b) Suit for Damages

-Vindictive or Exemplary Damage : These are those

damages awarded as punishment rather than
compensation.
Ex: Cheque bounce penalty to the issuer
- Damages for the loss of Reputation : Similar to
above example, A businessman, whose cheque
bounced due to mistake of bank, even though
sufficient balance was available in his account.
Here the businessman can file a case against
Bank due to loss of Reputation
Business Laws-Prof.Benny Pappachen
 b) Suit for Damages

Damage for Inconvenience or Discomfort : The

- damage can be recovered for the physical
inconvenience or discomfort.
Ex: Non working of A/C in Movie Theater causing discomfort,
audience can claim the damage

Damages Agreed in Advance : When a contract is

- made b/n the parties, they can decide in
advance the conditions for damages to be paid.
Ex: Mitali owes ` 5000 to Neetu and promised to pay on 10 th Sept. If
she fails to pay on time, Mitali will pay ` 6000 to Neetu. This means
Neetu can claim a maximum of ` 6000 from Mitali
Business Laws-Prof.Benny Pappachen
EXAMPLES
 d) Suit for Specific Performance of
Contract
In some cases, instead of damages against
breach of contract, court may ask for the
defaulter parties for a specific performance.
(No damage but perform your obligation)
Situations for Specific performance;
a) When compensation is inadequate
b) When actual damage is unable to calculate
(ascertain)
c) When the compensation is not possible in terms of
money
Business Laws-Prof.Benny Pappachen
 e) Suit for Injunction

Sometimes the Contract is made for not to do

something
In such case of breach of contract, court may
restrain (jail or punish) the party at fault.
Ex: An TV actress, Renuka has promised to act
exclusively for Balaji Telefilms and not to perform
with any other production house during contract
period of 2 years. But Renuka contracted with Zee
Telefilms co. Held, Renuka can be restrained (not
allowed) by injunction (banned) from doing so.

Business Laws-Prof.Benny Pappachen

 (Summarize)
Remedies for the Breach of Contract
In any contract, there are rights and obligation to
both the parties under contract.
Remedy means it is the way out given by law for
the enforcement of a right by the injured party.
When the contract is broken, the injured party
(the party at loss) has one more of the following
remedies

a)
Rescission of contract
b)
Suit for Damages
c)
Suit upon Quantum Meruit
d)
Suit for specific performance of contract
e) Suit for Injunction
Business Laws-Prof.Benny Pappachen