Consequences of breach of contract

 Consequences of breach of contract by kalyani

The law expects parties to a contract to perform their respective obligations, and naturally frowns upon a breach by either party. Therefore, when any party commits breach of contract the law provides other party three remedies which are as follows:

  1. Damages are provided for the sustained law

  2. Specific performance

  3. An injunction.

The law as damages is regulated by Contract Act, where as specific performance and injunction are regulated by Specific Relief Act.

Damages:

The plantiff in the breach of contract must be specific in their complaint about damages they are seeking for. It is upto the court what type of damages to give to the plantiff.

One important factor while deciding the damages court will take into account is whether damages are substantial or partial in nature.

Types of damages:

  1. Compensatory damages

  2. Restituition

  3. Liquidated damages

  4. Nominal damages

  5. Quantum merit

  6. Remedies in equity

  7. Punitive damages

Specific performance:

Specific performance is regulated under Specific Relief Act 1877. Specific Performance means party which have commited breach of contract is supposed to perform specific obligations provided in the contract given by plantiff.

Illustration: If A agrees to sell his car to B. B then agrees to purchase the car and pays the bill. After the payment if A refuses to give his car to B then B is entitled to recovery of that car.

Injunction: 

An injunction means court have power to give orders to parties to do something or abstain themselves from performing specific duty in a civil trial.

Injunction are of two types:

  1. Temporary: governed by code of civil procedure can be issued at any stage of the suit.


  1. Permanent: Governed by Specific Relief Act is issued after final order of the court. At the end of the suit.

 


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