Breach of Contract

When a party to a contract fails to perform his obligations under a

contract, it is called a breach of contract.
Remedies for breach of contract
1.Recession of contract.
When a party fails to perform his obligation under a contract, he
commits breach of contract and the other party may treat the contract
as rescinded. Aggrieved party is entitled to sue for damages caused by
the breach.
2. Suit for damages.
Its monetary compensation awarded to the aggrieved party by the
court for the breach.
a). Ordinary Damages;- these r awarded to compensate direct loss
caused by the breach.
b). Special Damages; these are payable in special circumstances and in
a result of indirect loss to aggrieved party in case of breach of contract.
The other party must be informed about the possibility of special
damages.i.e delivery of fragile items in two boxes(50k each) for the
exhibition with 100% profit.cost of articles(direct loss) loss of profit
(indirect loss).B must pay 50k as ordinary and 50k as special damage for
one box.

3.Nominal Damages;
The court may award nominal amount as damages i.e. 1000 rupees just
to recognize the rights of aggrieved party or may refuse to award. these
are awarded when aggrieved party does not suffer any monetary loss
due to breach of contract. Cement example.
4. Liquidated Damages:
These are the damages which are mentioned in the contract by the
parties in case of breach of contract the court allows the aggrieved
party to recover the reasonable damages not exceeding the amount
already agreed. If the actual loss is more than the agreed amount,
damages will be payable to the agreed amount. i.e 20k as penalty.
5. Exemplary Damages:
These r awarded not to compensate the aggrieved party but to punish
the guilty party.this breach causes disappointment to aggrieved party.
6. Suit upon Quantum Meruit:
Means as much as is done. Payment in proportion to the work
done.where a party has performed part of his promise and other party
rescinds the contract due to some lawful reason or becomes impossible
to perform, he can claim payment for the work done. Where other
party wrongfully rescinds the contract the aggrieved party can file a suit
upon quantum meruit for the work done and a suit for damages for the
breach. School wall.
7. Suit for specific performance.
Performing the contract as per the terms of contract.Court may order
the guilty party to complete his contractual obligation. Aggrieved party
can sue for the specific performance in following cases:
When monetary compensation is not an adequate relief.
Where it’s difficult to calculate the actual damage caused by breach.
Where compensation in money cannot be recovered.
8. Suit for Injunction
• The court issues order restraining the guilty party from doing certain
act which he promised not to do.
• Injunction is granted by the court where the damages are not an
adequate relief.