Remedies

for

Breach of Contract[Where there is a right there is a remedy]

Breach of Contract

(i) Actual Breach of Contract

(a) At the time when performance is due

(b) During the course of performance of the contract

• Express repudiation• Implied repudiation

(ii) Anticipatory Breach of Contract

Remedies for breach of Contract

1. Rescission of contract

2. Suit for damages

3. Suit upon quantum meruit

4. 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 CancellationThe court may refuse to rescind the contract• Where the plaintiff has expressly or impliedly

ratified the contract• When original positions of the parties can’t 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.

Suit for Damages

• Injured party is compensated• Making compensation in money as a

substitute for the promised performance.

1. Damages: [Doctrine of restitution]

Types of damages

A. Ordinary Damages,

B. Special Damages,

C. Vindictive, or Punitive or Exemplary Damages, and

D. Nominal Damages

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 A’s 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

Suit upon quantum meruit

• Quantum meruit determines the amount to be paid for services when no contract exists or when there is doubt as to the amount due for the work performed but done under circumstances when payment could be expected. 

For e.g. Emergency services provided by a doctor.

Suit for specific performance of the contract

• Order of the court upon the guilty party to perform what he promised to do. Such a remedy is possible in some cases such as:

Where monetary consideration is not an adequate remedy for the breach of contract.

When there exists no standard for ascertaining the actual damages caused by the non-performance of the contract.

When it is probable that compensation in money on non-performance of the contract cannot be obtained

Suit for specific performance of the contract

Exceptions to specific performances to be granted:

• Where the contract is of personal nature• Where damages are an adequate remedy• Where the court cannot supervise the

execution of the contract• Where the contract is made by the

trustees in breach of their trust

Suit for injunction

• An injunction is an equitable remedy in the form of a court order that requires a party to do or refrain from doing certain acts.

• A party that fails to comply with an injunction faces criminal or civil penalties and may have to pay damages or accept sanctions.

• In some cases, breaches of injunctions are considered serious criminal offenses that merit arrest and possible prison sentences.

THANK YOU

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