REMEDIES FOR BREACH OF CONTRACT (Section73,74, &75)| FREE LAW NOTES
Remedies for breach of contract(Section73,74, &75)
A contract creates rights and obligations and the parties to it have to abide the obligation and if any party omits to perform his obligation, the aggrieved party is having following remedies.
1. Recession: when a contract is breach by one party, the other party may sue to treat the contract as rescinded and refuse for the performance, he is absolved of all his obligations under the contract. The court may grant recession
a. Where the contract is voidable by the plaintiff
b. Where the contract is unlawful and the defendant is more to blame than the plaintiff
The court may refuses to resign the contract
a. Where the plaintiff has expressly and impliedly ratified the contract
b. Where the third parties have acquired rights in good faith and for value.
c. Where only the part of the contract is sort to be resided and such part cannot be separated from rest of the contract.
2. Damages: damages are a monetary compensation allowed to the injured party by the court for the loss or injury suffered by him by the breach of contract. The object of awarding damages for breach of contract is to put the injured party at the same position as if it has not injured.
Case law: Hadley V. Baxendala
X mill was stopped by the breakdown of shaft. He deliver a shaft to a common carrier Y and X did not make known to Y. delay would result in a loss. By some negligence of Y the delivery of shaft was delayed. It was held by the court that Y was not liable to pay damages as the circumstances communicated to Y did not shown that delay in delivering the shaft would result in loss.
3. Quantum meriut: it means as much as he earned. The phrase literally means as much as earned. When a person has done some work under a contract and not the party repudiates the contract or some event happens which makes for the performance of contract impossible.
Then, the party who has performed the work can claim remuneration four the work he has done.
Case law: Craven Ellis V. Cannon
Craven was employed as M.D in a company after he rendered services for 3 months. It was found that the directors were not qualified to appoint him so his appointment was challenged. So, court held that Craven could recover remuneration for the services he rendered under Quantum Meriut.
4. Special performance: In certain cases of breach of contract, damages are not an adequate; the court may in such cases direct the party in breach to carry out his promise according to the terms of contract. This is a direction by the court for specific performance of the contract at the suit of party not in breach.
Cases where specific performance of contract may be enforced:
(i) When the act agreed to be done in such way that compensation in money for non-performance is not an adequate belief.
(ii) Where there exist no standards for ascertaining the actual damages caused by the non-performance of the act agreed to be done.
Cases where specific performance is not granted by the court:
(i) Where damages are an adequate belief.
(ii) Where the contract is itself revocable.
(iii) Where the contract is of personal nature.
5. Injunction: where a party is in breach of negative terms i.e. he is doing something which he promised not to do. The court may restrain him from doing what he promised not to do. Such an order of the court is known as injunction.
Ex: A promise B that he will sing for B alone for next 1 year and will not sing anywhere else. After few months A started to sing for C and refused to perform for B. it was held by the court that A could be restrained by injunction from singing for C.