This document discusses various remedies available for breach of contract, including damages, specific performance, injunction, and quantum meruit. Damages are the most common remedy and involve monetary compensation to put the injured party in the position they would have been had the contract been performed. Specific performance and injunction are equitable remedies that may be granted to require a breaching party to fulfill their contractual obligations or be restrained from further breach. Quantum meruit allows recovery of the value of work performed under contracts that are later found to be invalid. All actions for breach of contract must be commenced within six years under the Limitation Act.
Breach of contract - Legal Environment of Business - Business Law - Manu Melw...manumelwin
Parties to a lawful contract are bound to perform their respective obligations. But when one of the parties of a contract fails to perform his part of contract, he is said to have committed breach of contract.
Breach of contract - Legal Environment of Business - Business Law - Manu Melw...manumelwin
Parties to a lawful contract are bound to perform their respective obligations. But when one of the parties of a contract fails to perform his part of contract, he is said to have committed breach of contract.
Remedies available to an innocent party when there is a breach of contract are
1) Rescission of contract;
2) Damages;
3) Specific performance
4) Injunction
5) Quantum Meriut
but for the purpose of answering the question, this slides covers on rescissions of contract and damages.
Remedies for Breach of Contract "PART 2" (Chapter 13) - Business LawSandeep Sharma
PPT on "Remedies for Breach of Contract" for BBA & B.Com 1st year students, CA, CPT, CS & CMA Foundation.
Business Law PPT by Sandeep Sharma.
(Meaning with suitable examples & explanations.)
Remedies for Breach of Contract "PART 1" (Chapter 13) - Business LawSandeep Sharma
PPT on "Remedies for Breach of Contract" for BBA & B.Com 1st year students, CA, CPT, CS & CMA Foundation.
Business Law PPT by Sandeep Sharma.
(Meaning with suitable examples & explanations.)
Remedies available to an innocent party when there is a breach of contract are
1) Rescission of contract;
2) Damages;
3) Specific performance
4) Injunction
5) Quantum Meriut
but for the purpose of answering the question, this slides covers on rescissions of contract and damages.
Remedies for Breach of Contract "PART 2" (Chapter 13) - Business LawSandeep Sharma
PPT on "Remedies for Breach of Contract" for BBA & B.Com 1st year students, CA, CPT, CS & CMA Foundation.
Business Law PPT by Sandeep Sharma.
(Meaning with suitable examples & explanations.)
Remedies for Breach of Contract "PART 1" (Chapter 13) - Business LawSandeep Sharma
PPT on "Remedies for Breach of Contract" for BBA & B.Com 1st year students, CA, CPT, CS & CMA Foundation.
Business Law PPT by Sandeep Sharma.
(Meaning with suitable examples & explanations.)
RemediesA valid agreement has been made, the promisor’s duties h.docxsodhi3
Remedies
A valid agreement has been made, the promisor’s duties have not been discharged; he or she has breached the contract. When one party has failed to perform, what are the rights of the parties? Or when the contract has been avoided because of incapacity or misrepresentation and the like, what are the rights of the parties after disaffirmance? These questions form the focus of this chapter.
A. Theory of Contract Remedies
Purpose of Remedies
The fundamental purpose of remedies in noncriminal cases is not to punish the breaching party but—if possible—to put the nonbreaching party in the position he or she would have been in had there been no breach. There are two general categories of remedies—legal and equitable. In the category of legal remedies are damages. Damages are money paid by one party to another; there are several types of damages.
In the category of equitable remedies are these three: specific performance, which means a person is ordered to deliver a unique thing (land or a unique personal property, such as a painting or an antique car); injunction, a judicial order directing a person to stop doing what he or she should not do (such as competing with a former employer in violation of a noncompete agreement); and restitution, which means putting the parties back into the position they were in before the contract was made.
Parties Have the Power—but Not the Right—to Breach
In view of the importance given to the intention of the parties in forming and interpreting contracts, it may seem surprising that the remedy for every breach is not a judicial order that the obligor carry out his or her undertakings. A damage remedy to compensate the maker for out-of-pocket loss or lost profits is sensible; a judicial decree forcing the computer manufacturer to pay for and take delivery of the boards would be wasteful. In general and if possible, the fundamental purpose of contract remedies is to put the nonbreaching party in the position it would have been in had there been no breach.
B. Promisee’s Interests Protected by Contract
Contract remedies serve to protect three different interests: an expectation interest, a reliance interest, and a restitution interest. A promisee will have one of these and may have two or all three. An expectation interest is the benefit for which the promisee bargained, and the remedy is to put him in a position as good as that which he would have been in had the contract been performed. A reliance interest is the loss suffered by relying on the contract and taking actions consistent with the expectation that the other party will abide by it; the remedy is reimbursement that restores the promisee to his position before the contract was made. A restitution interest is that which restores to the promisee any benefit he conferred on the promisor.
C. Legal Remedies: Damages
The promisee, whom we will hereafter refer to as the nonbreaching party, has the right to damages (a money award), if that is required to make h ...
2. REMEDIES FOR BREACH OF
CONTRACT
1. Introduction
2. Damages
3. Quantum Meriut
4. Specific Performance
5. Injunction
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3. 1. INTRODUCTION
• When one party breaches a contract, the
other party is entitled to be compensated
for that breach. This compensation is
called the remedy. The nature of the
compensation depends on numerous
factors such as:-
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4. a. the nature of the contract.
b. the nature of the breach
c. the extent of damages caused etc.
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5. • Remedies for breach of a contract are not
meant to punish the party in breach. It is
meant to put the parties in a position they
would have been if the contract had been
performed.
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6. 3. DAMAGES
• Damages are a form of monetary compensation
and are a common law remedy available to the
plaintiffs as of right. The purpose of damages is to
compensate the injured party for losses suffered.
The amount of damages awarded would depend
on the facts of the case itself.
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7. a. Liquidated Damages
• Sometimes the parties to a contract specify in the contract a
fixed amount that is to be paid in the event of a breach of
contract. This is known as an agreed damages clause. It is
very common to have this clause in a building contract or a
contract which is time sensitive where the parties agree that if
the party who is to carry out the work is in delay, the other
party would be entitled to claim S$X/day as liquidated
damages.
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8. • The advantage of liquidated damages or
agreed damages is that there is no need to
prove the actual monetary value of the losses
i.e. General damages.
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9. • However, the liquidated damages must be
a genuine pre-estimate of the loss.. If it is
too high or unreasonable, it will be
considered to be a penalty and the law
does not allow penalty clauses. It is
against the principle of the law of contract
and such a clause will be struck down..
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10. b. Mitigation
• Even though the party in breach is to
compensate the injured party, the injured
party as a duty to ensure that he takes
steps to minimise the loss caused by the
breach. This is called mitigation of loss.
The injured party must take reasonable
steps to reduce his loss once the other
party has breached the contract.
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11. • If the injured party does not mitigate his
loss, the court making the award of the
damages may reduce his claim for
damages..
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13. • Some of these examples are:
i. where work has been done under a contract
which does not specify the price;
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14. ii. where some work had been done by one
party under a contract which was repudiated
by the defendant;
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15. iii. where work was done by one party and
accepted by another under a contract later
discovered to be void;
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16. iv.where there was part performance of a
contract (not amounting to substantial
performance) by one party which was
voluntarily accepted by the other;
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17. v. where the contract is frustrated but the other
party has enjoyed a valuable benefit.
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18. b. Specific Performance
• This is a remedy where the court will order one
person to perform his contractual obligations.
This is quite rare and it is not as off right. It is a
remedy, which would not be granted in a
situation:-
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19. i. where damages are an adequate remedy;
ii. where the contract breached is one involving
personal services;
iii. where the performance of the contract would
require the constant supervision of the court.
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20. c. Injunction
– This is an order of court restraining a person from
breaching his contract. Like specific performance, it
is an equitable remedy and is granted only in
circumstances where the court thinks it is fair and
reasonable to do so. It is not available as of right.
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21. d. Limitation Act
– If one party breaches the contract, the other party
must commence an action within six(6) years from the
date of the breach. This is called the ‘limitation
period’ and it is stipulated by the Limitation Act (Cap
163).
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22. – If the action is not brought within six years it will be
time barred and the injured party will have lost his
right to claim.
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23. – Once the action is started, it does not matter how long
it takes before the dispute is resolved.
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