SUIT FOR DAMAGES

Remedies for way of damages are the most common remedy available to the injured party. This
entitles the injured party to recover compensation for the loss suffered by it due to the breach
of contract from the party who causes the breach.

Examples include;

 Mr. A agreed to sell Mr. B his house for 10,500,000 provided that on breach of contract,
the defaulting party will pay 50,000 as damages to the other. Mr. B broke the contract
and Mr. A resold the house the house for 10,000,000. Mr A sued Mr B and claimed the
50,000.
 Sam contracted to purchase a car from Tony for 400,000. But Sam failed to purchase the
car. The demand for the car far exceeded the supply and Tony could sell the car to
Temple without any loss of profit. Here, if Tony makes a claim upon Sam for breach of
contract, he will be entitled to nominal damages only.
 An employer enters a contract with an individual to do a job in which the payment will
be 50,000 and he is to commence work in one month time. The employer then sees
someone who is willing to do the same job for 40,000 and then employs him. The first
individual can sue the employer for breaching the contract.
 An individual contracted a plumber to fix the plumbing issues in the apartment, the
plumber then does a poor job resulting to water leakages therefore damaging the floor.
The plumber can be sued and he would owe for consequential damages.
 Temple entered in to contract with chulo in which chulo is to transport a factory
equipment to the factory explaining to him the urgency of the equipment. Chulo agrees
to enter into the contract with temple therefore agreeing to make the delivery on time.
However, chulo delayed the delivery resulting to a loss incurred by temple. He has the
right to sue chulo to pay for compensation for the profits that could have made.

SUIT FOR SPECIFIC PERFORMANCE

Specific performance is a type of remedy for breach of contract in which a court orders the
breaching party to perform their end of the bargain. That is, the party performs his obligation in
accordance to the terms of the contract.

Examples include;

 Rina offers to buy Beth’s’ house and beth accepts, but later decides to keep the
property. Since there’s no other piece of property or house exactly like Beth’s house,
 Rina may be entitled to specific performance on the contract. Beth would be compelled
to go through with the sale.
 UBA Bank group needed to sell a certain amount of their shares at a specified amount to
an interested buyer. Felix agreed to buy the shares at the specified amount. After Felix
made payment, UBA Bank group then decides not to sell anymore. Felix is entitled to act
on specific performance o the contract.
 Piper, a small town chief paid for a car to DUBI MONEY CARS LTD. then Dubi feels the
worth of the car will appreciate therefore refusing to sell the car off to piper. Piper can
be compelled to sue Dubi money and act on specified performance.
 An agreement for the sale of an agricultural land was made and the buyer had paid full
sale consideration to the seller. But the seller refuses to go through with the sale deed.
The buyer brought an action for the specific performance of the contract and it was held
at the court that the seller was directed to execute deed in favor of the buyer. Ram
Karan v. Govind
 Mr. Soso agreed to sell his car (maybach exelero) to one Mr. Temple. But later changed
his mind and refused to sell the car after entering into contract and Mr. Temple has
fulfilled his own apart of the contract. Due to the fact that the car is a very scarce
commodity, M r. Temple can be compelled to act on specific performance.

SUIT FOR RESCISSION

Rescission allows a non-breaching party to cancel the contract as a remedy for breach. Rather
than seeking monetary damages, the non-breaching can simply refuse to complete the end of
the bargain. Examples include;

 The three-day right of rescission, in which a borrower refinancing a loan has extra time
to reconsider the decision. The borrower must affirm the decision to exercise the right
of rescission by midnight of the third day after signing the contract.
 If a borrower decides to cancel, she/he must inform the lender. Once the contract is
rescinded, the lender must refund any fees associated with the contract that were paid
by the borrower, such as closing costs, inspection fees, etc. once this is complete, the
contract is then null and void.
 Rescission is a common practice in the insurance industry. Insurance that provides life,
fire auto and health coverage has the right to rescind policies without court approval,
 and if for example, they can prove than an application was submitted with false
information. Consumers who want to fight this can then take them to court.
 The right to rescission can also be applied to mortgage refinancing or home equity
loans. If a borrower wants to cancel a loan, they must do so at the latest at midnight of
the third day following the completion of the refinancing, including having received a
mandatory Truth in Lending (TIL) disclosure from the lender and two copies of a notice
advising them of their right to rescind. If the borrower rescinds, they must do so in
writing before the deadline.
 If a ceramics shop entered into a contract with a ceramics company in china to purchase
ceramics vases from them and have paid for everything including delivery. The Chinese
company then fail to deliver before due date. The ceramic shop can decide to rescind
the contract therefore the Chinese company will have to refund all money which have
been paid

SUIT FOR INJUNCTION

Injunction serves a similar purpose as specific performance. The difference is that with specific
performance, the court orders a party to do something. With an injunction, the court often
orders a party not to do anything. Injunctions may be permanent or temporary. Temporary
injunctions are often ordered while litigation is pending to prevent potential damage. While ,
permanent injunction are permanent. A judge may issue a permanent injunction as part of their
final ruling in a lawsuit. Examples include;

 An industrial plant dumping refuge in a lake may be served an injunction to stop the
activity.
 When a company is going through bankruptcy, the court can order an injunction to
prevent creditors from taking money and assets during the procedure.
 If a partner begins to sell massive amounts of company asset without approval or
agreement of the other partner(s), a timely injunction can put the brakes on the
bleeding enough to allow the parties to figure out what’s going on.
 In a situation of plagiarism, the court can give a temporary injunction then if the owner
of the property can prove that there is an actual infringement, the injunction will easily
evolve into a permanent injunction
 An injunction can be given to an industry to stop an activity which is causing harm in
one way or another to the general public.

SUIT FOR QUANTUM MERUIT

Remedy for a breach of contract available to an injured party against the guilty party is to file a
suit upon quantum meruit. The phase quantum meruit literally means “as much as is earned”
or “in proportion to the work done”. A right to use upon quantum meruit usually arises where
after part performance of the contract by one party, there is breach of contract, or the contract
is discovered void or becomes void. This remedy may be availed of either without claiming
damages. Examples include;

 A father and daughter enters into an agreement. The father asks his daughter to take
care of him then when he dies, he will leave all his estates to her. He then dies and gives
all the estates to his brother leaving his daughter with nothing. The daughter can claim
the remedy for quantum meruit seeking to recover a portion of the estate.
 A publishing house enters a contract agreement with a blogger to write about an article.
The publishing house was forced to close down after the blogger has written some
articles. The blogger can claim quantum meruit for the article already written.
 In a situation whereby an individual made a promise (contract) to pay or offer a service
in exchange for other services. However, the individual died before completing the deal,
so the other party can claim quantum meruit.
 Mr. Stanley enters into a contract agreement with david to do a job for him. David then
runs away with the money without doing the job. Mr. Stanley can claim for a quantum
meruit.
 A asks for the services of B knowing full well that the services aren’t free, if B performs
the services and A refuses to pay, B can file a law suit of quantum meruit against A.