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What are the Remedies for Breach of Contract?

What are the Remedies for Breach of Contract?

written by Mayank Barman January 16, 2020

Remedies for Breach of Contract

When one of the parties to the contract makes a breach of contract, then the other party h
following remedies available for Breach of Contract-

a) Damages

b) Quantum Meruit

c) Speci c Performance
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d) Injunction
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e) Rescind the contract and refuse further performance of the same.

Read Also: Contract of Indemnity

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The remedy by way of getting damages is perhaps the most common remedy available to t
injured party. This entitles the injured party to recover compensation for the loss caused o
suffered by him due to the breach of contract, from the party who caused the same.

Section 73 of the Indian Contract Act, 1872 makes provisions in this regard. It talks about t
right of an injured party to recover compensation for the loss suffered by him due to the br
contract. The Section has 18 illustrations to elaborate the section further.

In action for breach for a contract, there are usually two kinds of problems –

Firstly, the loss suffered by the plaintiff needs to be determined, whether it is a proxim
consequence of the breach of contract by the defendant or not. The defendant shall on
liable for the proximate consequences of the breach of contract. He will not be liable f
damages which are remotely connected with the breach of contract. This is known as
“Remoteness of Damages.”

Secondly, if it is deciphered that particular damage is in proximate result to the breach

contract, then how much compensation is to be paid by the defendant to the plaintiff,
same?

This question was answered in the case of Hadley v. Baxendale where it was held that dama
which as may fairly and reasonably be considered arsing to the usual course of things from
breach could be recovered. Secondly, damages which as may reasonably be supposed to hav
in the contemplation of both the parties at the time they made the contract.

Quantum Meruit

The expression “quantum meruit” means “as much as earned.” In other words, it means
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reasonable remuneration. The general rule is that when a party to a contract has not fully
performed what the contract stipulates, he cannot sue for the same.
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Mohana. when there
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who hasn't performed part of his contract and is prevented by the other party from further
completion, he may bring an action on a quantum meruit, for the amount of work he has d
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This claim arises when one party has abandoned the contractor Cookies Policy
the work done by a
under a void contract.
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Speci c Performance

This refers to the actual carrying out of the task by the parties as stipulated in the contract
Where a party fails to perform the contractual obligations, the Court may at its discretion
the defendant to perform his undertaking according to the terms stated in the contract. A d
for speci c performance of a contract may be granted along with damages or in place of da

Speci c performance is not granted when –

a) where monetary compensation is an adequate remedy;

b) where the court cannot supervise the execution of the contract;

c) where the contract is for some personal service;

d) where one of the parties to the contract is a minor.

The law which governs the speci c performance of a contract is the Speci c Relief Act, 196

Injunction

An injunction refers to an order of a court restraining a person from doing an act. It is a wa

secure the speci c performance of a negative term of the contract, where the court may giv
issue an order to the defendant restraining him from doing something that he promised no
do.  Injunctions can be prohibitory or mandatory; and temporary or perpetual.

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Rescission of Contract

When a party to a contract has committed a breach of contract, the injured party may put a
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contract to an end, i.e. rescind it, and he will be absolved from all the obligations under the
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contract. Section 65 says that when a party treats the contract toCookies
an end,Policy
then he makes hi
liable to restore any bene ts which he has received under the contract to the party from w

such bene ts were received originally. Section 75 says that if a party to a contract rightfull
rescinds the contract, then he is entitled to receive compensation for damage which he has
sustained through non-ful llment of the contract by the other party.

Read Also: Frustration of Contract

CONCLUSION

No one should get bene t from others unjustly. A remedy must be provided to the injured
quickly as possible. This is just not in morality but also in contractual obligations. The Ind
Contract Act, 1872 is the primary legislation governing contractual relations in India clear
mentions ve distinct grounds for awarding remedies to the injured party. This helps the p
to freely enter into contracts without any risk of getting cheated or bluffed from the other
The essence of law is justice and remedy to the affected party is a way to provide justice.
Therefore, damages, speci c performance, injunction, rescission, and quantum meruit are
remedies which the court grants in contractual relations.

BREACH OF CONTRACT SECTION 73 OF THE CONTRACT ACT

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MAYANK BARMAN

Hi! I am Mayank Barman and I'm a student of Department of Law, Universit

Calcutta. I'm extremely passionate about the law and I love to read, write an
research. I strive for novelty and new experiences and perceive new ideolog

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