BUSINESS LEGISLATION…

PRESENTATION
ON
REMEDIES FOR BREACH
OF CONTRACT
Krishman Singh
IITTM…
 MEANING…

A breach of contract discharges the promisee

from his obligation of performing the contract.
At the same time, the law provides certain
remedies to the promisee, i.e the injured
party against the promisor to enforce his
rights under the contract.
 An Injured party has one or more of the
following remedies……

* Suit for Rescission of the contract

• Suit for Damages
• Suit for Quantum Meruit
• Suit for Specific Performance
• Suit for Injunction
 Rescission of the Contract

Rescission of contract means ‘Cancellation’ or putting

an end to a contract. When promisor makes a breach
of contract, the promisee may rescind the contract.
The aggrieved party is discharged from all obligations
under the contract. He is also entitled to claim
compensation of damages caused to him due to the
non-performance of the contract.
 Effects of Rescission
Restitution
• Returning of goods or property received from the other
party to rescind a contract.
• If the actual goods or property is not available, a cash
equivalent must be made.

Right to compensation for damages

Sec.75, When a person rightfully rescinds a contract is
entitled to compensation for any damage which he has
sustained through the non-fulfillment of the contract.
 Suit for Damages
Damages are the monetary award granted to an
aggrieved party for the breach of contract.
Damages may be ordinary, special, exemplary or
nominal.
Damages are awarded for compensation of loss
caused to the aggrieved party & not as
punishment to the party at default.
 Damages

Nominal Ordinary Exemplary

(No actual loss (Usual remedy) (punitive)
suffered)

General Special
 Monetary Damages
Damages refer to the monetary, property, or
personal losses suffered by the plaintiff.

Compensatory Damages
Compensatory damages are designed to restore
the plaintiff to his or her original condition, or
to reimburse the plaintiff for her expenses.
 Punitive Damages
• Punitive damages are rare in contract cases.
• An award of punitive damages is the jury’s
way of punishing the defendant for some
action.
Nominal Damages
Nominal damages refer to an award of a small or
token amount to a plaintiff.
 Liquidated Damages
A liquidated damages clause is one in which the
parties set out in advance what constitutes a
breach and how the damages for this breach
will be assessed.
 Quantum Meruit
• Quantum meruit is a Latin term that translates
“as much as merited.”
• It is a legal doctrine that creates a
presumption that a person who performs a
service for another deserves to be paid.
 Specific Performance
Specific Performance means the performance of
contract as per the terms of contract.
Specific performance is a court order that
requires a party to do that which he has
already agreed to do in the contract.
 Injunction
When a party seeks an injunction, the party files
an action with the court stating that the
defendant's actions will result in serious and
irreparable damage to the plaintiff.