Remedies for Breach of

Contracts
LEB Session 9
Various remedies available for breach of contracts
BREACH OF CONTRACT
BREACH OF CONTRACT : REMEDIES
 BREACH OF CONTRACT

ACTUAL BREACH: ANTICIPATORY BREACH

Breach of contract on due date or during the period
of contract.
The other party to the contract may sue for
damages.
One of the party to the contract expresses
his inability to perform the contract, much
earlier to the due date of performance
 REMEDIES FOR BREACH OF A CONTRACT
01 RECESSION When one party breaches the contract, the other party can rescind the contract. The
other party is absolved of his contractual obligations and is entitled to claim damages.
02 DAMAGES Damages are the monetary compensation, allowed for the loss suffered by the
aggrieved party due to the breach of contract by the other party.
The object is not to punish the party at default, but to make good loss suffered by the
aggrieved party due to breach of contract.

03 SPECIFIC Specific performance means seeking an order from the court that the promise specified
PERFORMANCE in the contract shall be carried out.
When the actual damages arising from the breach of contract are not measurable and
the monetary compensations not an adequate remedy, then specific performance may
be directed by the court.

04 INJUNCTION When a party to a contract, is negating the terms of the contract, the court may by
issuing an “Injunction Order”, restrain him from doing what is promised not to do.
05 QUANTUM It means, “As much as is earned.”. If a party prevents the other party from completing
MERUIT his obligations under the contract, the aggrieved party may claim payment of Quantum
Meruit for the part of contract already performed by him.
“A” contracted with “B”, to supply in 10 items, at a contracted total price of Rs.10000,
but asked him to stop supplying after delivery of 6 units. B is entitled to get Rs 6000.
 TYPES OF DAMAGES
1 LIQUIDATED / UNLIQUIDATED DAMAGES
Liquidated Damages The amount of damages to be paid is stipulated in the agreement between the contracting parties
Un Liquidated Damages These are awarded by the courts on an assessment of the loss or injury caused to the party
suffering such breach of contract
2 NOMINAL / SUBSTANTIAL / SPECULATIVE DAMAGES
  Nominal Damages Damages awarded even when there is no actual loss or injury caused to a party against whom a
breach has been caused,
Substantial Damages Substantial damages are awarded when the extent of breach of the contract is proved but there
are uncertainties regarding calculation.
Speculative Damages The damages, which are just and reasonable, but are only approximate. These damages are
definitely attributable to the wrong and only uncertain in respect of their amount,
3 COMPENSATORY / EXEMPLARY DAMAGES
  Compensatory Damages They aim at compensating the plaintiff for the loss suffered.
A General / Ordinary Damages, which would arise in the normal course of events. Generally, they are awarded to
Damages compensate the actual loss suffered by the other party. Its intention is not to punish, but to
compensate the loss.
B Specific Damages Special damages refer to those that arise under circumstances which were reasonably anticipated
by the parties when they entered into the contract. These damages are required to be established.
Specific proof is required.
Exemplary Damages Exemplary damages are punitive in nature. They intend to punish the defendant more than
compensating loss suffered