Professional Documents
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Breach of Contract
1. 2. 3. 4.
Rescission of contract Suit for damages Suit upon quantum meruit Suit for specific performance of the contract 5. Suit for injunction
Rescission or Cancellation
Revocation or discharge of contract Benefits are restored and compensation for damages can be claimed Rescission is granted in the cases when: 1. The contract is voidable at the option of the plaintiff 2. The contract is unlawful for causes not apparent on face and defendant is more to blame that the plaintiff.
Rescission or Cancellation
The court may refuse to rescind the contract Where the plaintiff has expressly or impliedly ratified the contract When original positions of the parties cant be restored due to changed circumstances When third parties have, during the subsistence of the contract acquired rights in good faith and for value When only one part of the contract is to be cancelled and that is not separable from the rest of the contract.
A. Ordinary Damages A contracts to deliver 100 bags of rice at Rs. 100 a bag on a future date. On the due date he refuses to deliver. The price on that day is Rs. 110 per bag. The measure of damages is the difference between the market price on the date of the breach and the contract price, viz., Rs. 1,000.
B. Special Damages
A delivers to B, a common carrier, a machine to be conveyed, without delay, to As mill, informing B that his mill is stopped for want of the machine. B unreasonably delays the delivery of the machine, and A in consequence, loses a profitable contract with the other Company.
C. Vindictive Damages These have been awarded (a) for a breach of promise to marry; (b) for wrongful dishonour of a cheque by a banker possessing adequate funds of the customer. D. Nominal Damages
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