Remedies for Breach of Contract

Indian Contract Act, 1872

TANMOY MUKHERJEE INSTITUTE OF JURIDICAL SCIENCE

Dr. Tanmoy Mukherjee

Advocate

 

Remedies for Breach of Contract-

Tanmoy Mukherjee

Advocate

When a contract is breached, the aggrieved party is entitled to certain legal remedies to protect their rights.

(1) Damages: [Sec. 73 and Sec. 74, Indian Contract Act, 1872]-

Damages are monetary compensation awarded to the aggrieved party for loss suffered due to breach of contract.

i) Ordinary Damages-

Indian Case-

Karsandas H. Thacker v/s Saran Engineering Co.

(ii) Special Damage-

Loss arising due to special circumstances, communicated to the other party.

Reference Case-

Victoria Laundry v/s Newman Industries (1949)

Haji Ahamad v/s Abdul Gani

(iii)Exemplary Damages-

Reference Case-

 (iv) Nominal Damages-

Awarded when legal right is violated but no actual loss is proved.

Reference Case-

Charan Das v/s Amir Khan

(v) Liquidated Damages and penalty (sec-74)-

Reference Case-

2. Rescission of Contract (Sec: 75)-

 Rescission means cancellation of contract when one party refuses or fails to perform.

Reference Case-

3. Suit for specific performance-

Reference Case-

Lumley v/s Wagner

4. Injunction-

 Preventive remedy restraining a party from committing breach.

Reference Case-

5. QUANTUM MERUIT –

 Quantum Meruit means as much as earned. Allows recovering for work already done.

Reference Case-

State of Madras v/s Giannon Dunkerley

Planche v/s Colburn

6. Restitution (Sec-65)-

According to Sec-65, when an agreement is discovered to be void, or when a contract becomes void, any person who has received any advantage under such agreement or contract is bound to restore it, or to make compensation for it to the person from whom he received it.

-When agreement is void or becomes void, benefit received must be restored.

Suit for refund of Earnest Money-

 Court may allow four features only if reasonable.

Reference Case-

Maula Bux v/s Union of India. (1969).