Remedies for Breach of Contract

The Indian Contract Act lays out all the provisions for the performance of a contract. It additionally contains the provisions just in case of breach of contract by either party. Allow us to take an in-depth investigation of the available remedies for breach of contract.

When any breaks a promise or agreement of the parties, we tend to decide a breach of contract. Therefore once either of the parties does not keep their finish of the agreement or doesn't fulfil their obligation as per the contract terms, it is a breach of contract. There are many remedies for breach of contract obtainable to the wronged party. Allow us to take a glance.

1] Recession of Contract

When one of the parties to a contract doesn't fulfil his obligations, then the opposite party will repeal the agreement and refuse the performance of his obligations.

As per section 65 of the Indian Contract Act, the party that rescinds the contract should restore any advantages he got underneath the agreement described above. And section 75 states that the party that rejects the contract is entitled to receive damages and/or compensation for such a recession.

2] Sue for Damages

Section 73 clearly states that the party who has suffered, since the opposite party has broken guarantees, will claim compensation for loss or damages caused within the ordinary business course.

Such damages will not be collectable if the loss is abnormal, i.e. not within the standard course of business. There are two varieties of injuries in keeping with the Act,

Liquidated Damages: Generally, the parties to a contract can comply with the quantity collectable just in case of a breach. This is often called liquidated damages.

Unliquidated Damages: Here, the quantity collectable because of the breach of contract is assessed by the courts or any applicable authorities.

3] Sue for execution

This means the party in breach can even have to hold out his duties in keeping with the contract. In some instances, the courts could insist that the party do the agreement.

So, if any of the parties fails to perform the contract, the court could get them organised to try and do, therefore. This is often a decree of execution and is granted rather than damages.

For example, A determined to shop for a parcel of land from B. B then refuses to sell. The courts will order B to perform his duties underneath the contract and sell the land to A.

4] Injunction

An injunction is essentially sort of a decree for execution except for an unfavourable contract. A request could be a judicial writ restraining someone from doing a selected act.

So a court could grant an injunction to prevent a celebration of a contract from doing one thing he secures not to do. During a prohibitor injunction, the court stops the commission of an act, and during a cease and desist order, it'll prevent the continuance of an action that's unlawful.

5] Quantum Meruit

Quantum meruit virtually translates to “as a lot of is earned”. Sometimes once one party of the contract is prevented from finishing his performance of the contract by the opposite party, he will claim quantum meruit.

So he should be paid a reasonable remuneration for the part of the contract he has already performed. This might be the remuneration of the services he has provided or the worth of the work he has already done.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts made to ensure the accuracy and correctness of the information published, White Code Legal and Tax shall not be responsible for any errors caused due to human error or otherwise.