Remedies for Breach of Contract

RemEdies for brEAch of contract

Presented by:- Shashank

singh
Anjali pandey
Sangeeta
Pooja sharma 1
 Breach of contract.
 Types of Breach of contract.
 Remedies for breach of contract.
 Suit for Recession.
 Suit for Damages.
 Suit for Quantum Meruit.
 Suit for Specific performance.
 Suit for Injection.

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Breach of Contract

A breach of contract occurs if any party

refuses or fails to perform his part of the
contract.

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A Breach of contract
may arise in two ways ,

Breach

Anticipatory Breach Actual Breach

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Anticipatory Breach
Anticipatory Breach“ An anticipatory breach occurs
when a party demonstrates his intention to break a
contract”
Vocal or written confirmation is not required,
Failure to perform an obligation in a timely matter
can result in a breach.
By declaring an anticipatory breach, the
counterparty may begin legal action immediately
rather than waiting until a contract's terms are
actually broken.

For example Rajesh Agrees To Marry Shantha ,

Before the date of Marriage Rajesh Heard that
Shantha Going to Marry Sudharman
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Actual Breach
This may take place in any of the
following two ways:

Actual Breach

On due date of During the course

performance of performance

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 Actual Breach
 On due date of performance
 If any party to contract
refuses or fails to
perform his part of the
contract at the time
fixed for performance
it is called an actual
breach of contract
before due date of
performance
 During the course of
performance
 If any party has
performed a part of the
contract and then
refuses or fails to
perform the remaining
part of the contract, it
is called actual breach
of contract during the
course of performance
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Remedies for breach of contract
 A legal remedy is a court order that seeks to
uphold a person’s rights or to redress a breach
of the law.

 When one party breaches a contract, the other

party may ask a court to provide a remedy for
the breach. The court may order the breaching
party to pay money to the non-breaching party.

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Types of Remedies
SUIT FOR
RESCISSION

SUIT FOR DAMAGES

SUIT FOR QUANTUM

MERUIT

SUIT FOR SPECIFIC

PERFORMANCE

SUIT FOR AN
I NJUNCTION
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Suit for Recission

 The term Rescission refers to the

cancellation of contract.
 In such cases, if one party has broken his
contractual relations, the other party may treat the
breach as discharge and refuse to perform his part
of performance.
 Thus in case of rescission of contract, the
aggrieved or injured party is discharged from all his
obligations of the contract.

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UNDER FOLLOWING CASES THE COURT MAY
REFUSE TO GRANT RESCISSION
 The parties cannot be restored to their
original positions due to changed
circumstances.
 The party(s) has acquired rights in good
faith and value during subsistence of
contract.
 Only a part of the contract is rescinded and
this part can’t be separated from rest of the
contract.
 But if a person rightfully rescinded, he is
entitled to compensation for any damage
which he has sustained through non
fulfilment of the contract by the other party.
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EXAMPLE
 'A' contracts to supply 10kg of tea leaves for Rs. 8,000 to
'B' on 15 June. If 'A' does not supply the tea leaves on
the appointed day, 'B' need not pay the price. 'B' may
treat the contract as rescinded and may sit quietly at
home. 'B' may also file a ‘suit for rescission’ and claim
damages.

Breach of
contract when
A ‘A’ don’t supply
to ‘B

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SUIT FOR DAMAGES

Damages are a monetary compensation

allowed to the injured party for the loss or
injury suffered by him as a result of the breach
of contract.

The fundamental principle underlying

damages is not punishment but to
compensate the aggrieved party for the loss
suffered by him in the original position as he
would have been.
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Rules regarding damages

 The damages must naturally arise in the usual

course of things from such breach i.e. the
damages must be the proximate or direct
consequence of the breach of contract.
The aggrieved party must have suffered
damages by breach of contract.
Damages are awarded to compensate the loss
caused by a party but not to punish the party at
default for the breach of contract.
Amount of damages can be decided at the time
of agreement by the mutual consent of both the
parties.

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TYPES OF DAMAGES

• ORDINARY
• SPECIAL
THERE • EXEMPLARY
• NOMINAL DAMAGES
ARE 8 • DAMAGES FOR
TYPES OF INCONVENIENCE AND
DISCOMFORT
DAMAGES • LIQUIDATED DAMAGES AND
PENALTY
• STIPULATION FOR INTEREST
• FORFEITURE OF SECURITY
DEPOSIT

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EXAMPLE
 Mr. A to pay 3 lac to Mr.B on 1st April. Mr.A does not pay
the money on that day. Mr. B is unable to pay her debts
and suffer a loss. Mr. A is liable to pay B principal amount
and also interest on it.

A
Breach of contract
when ‘A’ don’t give
money to ‘B’.
Payable money
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SUIT FOR QUANTUM MERUIT
 Itmeans “AS MUCH AS EARNED” or “in proportion
to the work done.”
 Right to ‘Quantum Meruit’ literally means a right to
claim the compensation for the work already done.

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EXAMPLES
Mr.A engages Mr.B a contractor, to build a three storied
house. After a part is constructed ‘A’ prevents ‘B’ from
working any more. ‘B’ the contractor, is entitled to get
reasonable compensation for work done under the
doctrine of quantum merit in addition to the damages
for breach of contract.

A
Breach of contract
when ‘A’ told ‘B’ to
stop building
construction.
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SUIT FOR SPECIFIC PERFORMANCE
 Suit for Specific performance means demanding
the court’s direction to the defaulting party to carry
out the promise according to the terms of contract.
Cases where suit for specific performance is not
maintainable
i. Where actual damages arising from breach are
not measurable.
ii. Where monetry compensation is not an
adequate remedy.

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Example
 X agreed to sell an old painting to Y for
Rs50,000. Subsequently, X refused to
sell the painting . Here, Y may file a suit
against X for the specific performance
of the contract.

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SUIT FOR INJECTION
 It means demanding court’s stay order.
 An order of the court which prohibits a
person to do a particular act.
 A party to a contract does something which
he presumed not to do , the court may issue
an order prohibiting him from doing so.

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EXAMPLES
 A, a singer contracts with B the Manager of a
theatre to Sing at his theatre for one year and
to abstain from Singing at other theatres
during the theatre. She absents herself , B
cannot compel A to sing at his theatre, but he
may sue her for an injunction restraining her
from Singing at other theatres .
 G agreed to take the whole of his supply of
electricity from a certain company. The
agreement was held to import a negative
promise that he would take none from
elsewhere. He was, therefore, restrained by
an injunction from buying electricity from any
other company.

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Thank you 23