Remedies for breach of contract

In case of breach of a contract , the injured party has one

or more of the following remedies:

Rescission :The term Rescission refers to the cancellation

of contract.
 In such cases, if one party has broken his contractual
relations, the other party may treat the breach as discharge
and refuse to perform his part of performance.
 Thus in case of rescission of contract, the aggrieved or
injured party is discharged from all his obligations of the
contract.
Quantum meruit- It means “AS MUCH AS EARNED” or
“in proportion to the work done.”
 The phrase ‘Quantum Meruit’ literally means
 When a person has begun the work and before he could
complete it, the other party terminates the contract or does
something which make it impossible for the other party to
complete the contract, he can claim for the work done
under the contract so far party.
 P agreed to write a volume on ancient armour to be published
in a magazine owned by C. For this, P was to receive 100
pounds on completion. When P had completed part of the
work, but not the whole, C abandoned the magazine. P was
held entitled to get damages for breach of contract and
payment quantum meruit for the part already completed.
 A, engages B, a contractor, to build a three storied house.
After a part of the house is constructed, A prevents B from
working any more. B, the contractor, is entitled to get
reasonable compensation for work done under the doctrine of
quantum meruit in addition to the damages for breach of
contract.
Contd..

 Specific performance-In certain cases the court may direct

the party in breach of a contract to actually carry out the
promise, exactly according to the terms of the contract.
Specific performance means the actual carrying out of
the contract as agreed.
 Under certain circumstances an aggrieved party may file a
suit for specific performance, i.e., for a decree by the court
directing the defendant to actually perform the promise that
he has made.
Such a suit may be filed either instead of or in
addition to a suit for damages.
Following case where Specific performance may be
granted.
Where the act agreed is such that compensation in
money for the non-performance is not an adequate
relief.
Where there exist no standards for ascertaining the
actual damage caused by non performance.
When it is probable that the compensation in money cannot be recovered for
non-performance of the act.

Specific performance will not be granted :-

Damages are an adequate remedy.
Contract is not certain.
The contract is revocable
The contract has breach of trust
The contract is of a personal nature .eg contract to marry.
The contract laid down by a company in excess of its power mentioned in
MOA


Injunction – Where a party is doing something which
he has promised not to do,the Court may,by issuing a
order ,restrain him from performing the act.Such an
order from the court is known as Injunction
Eg N,an film actress,agreed to act exclusively for W for
a year and for no one else,During the year she
contracted to act for Z.Held she could be restrained by
injunction from doing so.
 Contd..

 Damages- Monetary compensation awarded to the injured party

by court for the loss or injury suffered by him.(sec. 73 of Indian
contract law)
 The types of damages are :
1. Ordinary damages:-When a contract has been broken,the
injured party can recover from the other party such damages as
naturally and directly arose in usual course of breach of
contract .
2. Special damages
3 Vindictive or exemplary damages.:By way of
compensation of loss suffered and not by the way of
punishment.
4 Nominal damages.
5 Damages for loss of reputation
6 Damages for inconvenience and discomfort.
Contd..

7 Mitigation of damages:He cannot claim compensation for the

loss which is really due not to the breach but due to his own
neglect to mitigate the loss after the breach
8 Difficulty of assessment

9 Cost of decree
10 Damages agreed agreed upon in advance in case of breach.

 Liquidated damages and penalty.

Quasi contracts
 Contd..

 Quasi contracts rest on the ground of equity that a person shall

not be allowed to enrich himself unjustly at the expense of

another.
 Strictly speaking , a quasi contract is not a contract at all and at

the other hand it is created by law. It is an obligation which law

creates in absence of any agreement.
 Contd..

Sec 68 to 72 deal with the following quasi – contracts:

1. Claim for necessaries supplied to a person is incapable of
contracting or in his account.
2. Reimbursement of a person paying money due by another in
payment of which he is interested.
3. Obligation of a person enjoying benefit of a non-gratuitous act.
4. Responsibility of finder of goods.
5. Liability of person to whom money is paid or thing delivered
by mistake or under coercion.
6. Quantum meruit.this means ‘as much as earned’