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Remedies for Breach of Contract


Remedies for breach of contract:

Section 73 of the contract Act deals with the consequences of a breach of contract and on the basis of which compensation for any loss or damage is to be assessed by providing that when a contract has been broken, the party who suffers by such breach is entitled to receive from the party who has broken the contract, compensation for any loss or damage caused to him thereby which naturally arose in the usual course of things from such breach or which the parties knew, when they made the contract, to be likely result from the breach of it. It further provides that such compensation was not to be given for any remote indirect loss or damage sustained by reason of such breach.

The aggrieved party under the alleged breach of contract has following remedies.

  1. Waiver
  2. Suit for damages.
  3. Suit upon Quantum Meruit.
  4. Suit for Specific Performance.
  5. Suit for Injunction


A party who is aggrieved from the alleged breach of contract may waive his right to any compensation or other remedy available against the violation of terms of contract.

Notice of breach:

When a party to a contract is entitled to cancel the contract by reason of breach by the other, a notice of cancellation should be given to other party. If no notice is given then the breach is condoned and the contract is allowed to continue.

Suit for damages:

The remedy of a suit for damages for breach of a contract need not be one of the terms of contract but becomes available under the law in case of a breach of contract. The ordinary remedy of a suit for damages in case of a breach is not excluded merely because certain other remedies in case of breach are mentioned in contract. But where of one of the several remedies has been availed of another remedy may be barred by the operation of order 2 rule 2 of CPC. The right to compensation arises coincidently with the right to specific performance and out of the breach or non-performance of the contract for sale. Where, therefore, the purchaser sues for and obtains a decree only for the specific performance of the contract, his subsequent suit for compensation for the breach would be barred under 0.2, R.2 CPC.

Remote and indirect damages:

Compensation under S. 73 is not to be awarded for any remote of indirect loss or damage. In estimating compensation under S. 73, loss or damage, the means which existed of remedying inconveniences to be taken into contract.

Kinds of damages:

Damages are usually considered under two head.

  1. General or non-pecuniary damages:

That is physical injury, pain and suffering, impaired capacity for the enjoyment of life or lessened capacity to earn.

  1. Special or pecuniary damages:

That are actual, incidental and direct expense, capable of calculation in terms of monetary value may it be on account of medical treatment, loss in business profit, earning or otherwise.

Breach of promise to marry.

A breach of contract of betrothal gives rise to a cause of action to the party aggrieved to maintain a suit for damages or compensation against the party thereof. The elements to be considered in assessing damages, are annoyance and also possible loss of reputations and injury that may result from that loss.

Measure of damages:

The usual damages allowed are the differences between contracted rate and that prevailing on the date of breach and if there is no evidence available as regard the rote on the date of breach the rate prevailing on the next nearest date is to be taken into consideration for the purpose of assessing damages.

Principle of restitution in integrum.

            Court would endeavor, so far as money could do it, to place the injured in the same situation as if the contract had been performed.

Suit upon Quantum meruit:

Compensation Quantum meruit are awarded for work done or services rendered, when the price thereof is not fixed by a contract. Therefore, where there is no agreement as to charge for repair, the contractor is entitled to reasonable charges. For work done or services rendered pursuant to the terms of a contract, compensation quantum meruit cannot be awarded where the contract provides for the consideration payable in that behalf Quantum meruit is but a reasonable compensation awarded on implication of a contract to remunerate and an express stipulation governing the relations between the parties under a contract cannot be displaced by assuming that the stipulation is not reasonable.

Part performance of contract:

Where contract was for construction for eight storied building but sanction being given for four storeys constriction and beyond sanction limit was not permissible and if undertaken was to violate provisions of law, part of work performed by plaintiff was proved. Plaintiff although was not entitled to receive from defendant reimbursement of the entire amount as claimed yet defendants were liable to pay jointly and severally, to plaintiff specified amount for work done by it, which was decreed with interest as worked out by court from the date of suit till payment.

Suit for specific performance of contract:

Where there is a breach of contract by one party, the other party may sue for specific performance. He need not prove that he was ready and willing to perform his part of the contract even after the breach by the other party. There is a distinction between damages for breach of a contract which can only be claimed under the contract Act and damages in substitution for specific performance the claimed under the contract Act and damages in substitution for specific performance the claim for which S. 19 of the specific relief Act permits. The two claims are based on entirely different considerations. Compensation in substitution for specific performance is granted where the court could have granted specific performance but declines in its discretion to do so. Whether the claim is for specific performance or for damages the cause of action is breach of contract. The relief follows as a consequence of the breach of contract. If the aggrieved party is ready and willing to carry out his part and the party complained against commits the breach then the party aggrieved may either sue for specific performance or damages. Moreover, a claim for specific performance under the specific relief Act can co-exist with a claim for damages under the contract Act and a claim under one Act cannot preclude a claim under the other so long as the requirements of specific statutes are satisfied. In a proper case, therefore, a plaint for specific performance can be converted by amendment into a claim for damages for breach of contract.


It is an order made by the court forbidding a person or class or persons from doing a certain act, or acts of a certain class.

Injunction against breach of contract:

Where plaintiff who had performed part of his assignment in accordance with terms of contracts complained of breach of same by defendants, and required them to be restrained by injunction from committing such breach and also claimed damages as per averments in plaint. Plaintiff having already claimed damages in his suit as mentioned in prayer clauses, such fact would show that loss, if any sustained by him could be ascertained in terms of money which fact disentitle him to grant of injunction.

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