REMEDIES FOR

BREACH OF CONTRACT

In case of breach of contract, the injured party

has one or more of the following remedies:
1.Suit for RESCISSION: Rescission is the
revocation of contract. When there is breach of a
contract by a party , the injured party may sue to
treat the contract as rescinded. He is also
absolved of all the obligations under the contract.
2.Suit for DAMAGES: Damages are monetary
compensation awarded to the injured party by
Court for the loss or injury suffered by him.
The foundation for modern law of damages, both in
India and England, is to be found in the case of
Hadley vs. Baxandile .

2.HADLEY VS.BAXANDILE(1854)
Xs mill was stopped by the breakdown of a shaft.
He delivered the shaft to Y, a common carrier, to
be taken to a manufacturer to copy it and make a
new one. X did not make known to Y that delay
would result in loss of profits. By some neglect
on the part of Y the delivery of the shaft was
delayed in transit beyond a reasonable time (so
that the mill was idle for a longer period than
otherwise would have been the case had there
been no breach of the contract of carriage).
Held, Y was not liable for loss of profits during
the period of delay as the circumstances
communicated to Y did not show that a delay in
the delivery of the shaft would entail loss of

2.DAMAGES MAY BE OF FOUR

TYPES:
(1) Ordinary Damages: These are damages
which actually arise in the usual course of things
from the breach of a contract.
(2) Special Damages: Damages which arise
from unusual circumstance known to both the
parties to the contract are called special
damages.
Damages which may reasonably be supposed to
have been in the contemplation of both the
parties at the time when they made the contract
as the probable result of the breach of it, are
known as special damages and may be recovered.

..DAMAGES MAY BE OF FOUR

TYPES:
or Exemplary or Punitive
Damages: These damages are allowed in
case of the breach of a contract to marry
or dishonor of a cheque by a banker
wrongfully.
4.Nominal Damages: Where the injured
party has not suffered any loss by reason
of the breach of a contract, the Court may
award a very nominal sum as damages.
3.Vindictive

3.SUIT UPON QUANTUM MERUIT:

[AS MUCH AS EARNED]

A right to sue on a quantum meruit (as much as

earned) arises where a contract, partly performed
by one party, has become discharged by the
breach of the contract by the other party.
This right is founded on the implied promise by the
other party arising from the acceptance of a
benefit by that party.

LIQUIDATED DAMAGES AND

PENALTY.

Liquidated damages represent a sum, fixed or

ascertained by the parties in the contract, which
is a fair and genuine pre estimate of the probable
loss that might ensue as a result of breach. A
penalty is a sum named in the contract at the
time of its formation, which is disproportionate
to the damage likely to accrue as a result of
breach the Courts in India allow only reasonable
compensation.

4.SUIT FOR SPECIFIC

PERFORMANCE
4.Specific

Performance :In
certain cases the Court may
direct the party in terms of the
contract to actually carry out the
promise, exactly according to the
terms of the contract. This is
called specific performance of
the contract.

INJUNCTION
Injunction:

It is a mode of
securing the specific
performance of the negative
terms of a contract.