This document discusses remedies for breach of contract, including rescission, damages, quantum meruit, specific performance, and injunction. It defines each remedy and provides examples. Rescission allows a party to treat a contract as voided due to breach. Damages provide monetary compensation for losses from breach. Quantum meruit applies when partial performance justifies compensation. Specific performance requires literal fulfillment of contract terms. Injunctions enforce negative contract obligations.
All agreement are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object and are not expressly declared to be void.
All agreement are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object and are not expressly declared to be void.
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 ...
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1Key Concept 9 Understand the differences between compe.docxaryan532920
1
Key Concept 9: Understand the differences between compensatory and punitive damages1
A. Torts
1. Compensatory and Punitive Damages
Tort law involves civil liability between private parties. A plaintiff who wins a
tort suit usually recovers the actual damages or compensatory damages that she suffered
because of the tort. Depending on the facts of the case, these damages may be for direct
and immediate harms, such as physical injuries, medical expenses, and lost pay and
benefits, or for harms as intangible as loss of privacy, injury to reputation, and emotional
distress.
In cases where the defendant’s behavior is particularly bad, injured victims may
also be able to recover punitive damages. Punitive damages are not intended to
compensate tort victims for their losses. Instead, they are designed to punish flagrant
wrongdoers and to deter them and others from engaging in similar conduct in the future.
Theoretically, therefore, punitive damages are reserved for the worst kinds of
wrongdoing. Punitive damages have always been controversial, but they have grown
more so in recent years due to the size of some punitive damage awards and the
perception that juries are awarding them in situations where they are not justified.
2. Negligence Defenses
The common law traditionally recognized two defenses to negligence:
contributory negligence and assumption of risk. In many states, however, one or both of
these traditional defenses has been superseded by new defenses called comparative
negligence and comparative fault.
Contributory negligence is the plaintiff’s failure to exercise reasonable care for
her own safety. Where it still applies, contributory negligence is a complete defense for
the defendant if it is a substantial factor in producing the plaintiff’s injury. Traditionally,
even a minor failure to exercise reasonable care for one’s own safety, only a slight
departure from the standard of reasonable self-protectiveness, gave the defendant a
complete contributory negligence defense. For example, the rule may prevent slightly
negligent plaintiffs from recovering any compensation for their losses, while only
marginally more careful plaintiffs get a full recovery.
In response to [complaints of its harsh impact on most plaintiffs], most of the
states have adopted comparative negligence systems either by statute or by judicial
decision. The details of these systems vary, but the principle underlying them is
essentially the same: Courts seek to determine the relative negligence of the parties and
award damages in proportion to the degree of negligence determined. The formula is:
1 Excerpts taken from Jane P. Mallor, et al., Business Law and the Regulatory Environment (11th ed. 2001).
2
Plaintiffs recovery = Defendant’s percentage share of the negligence causing the injury
multiplied by Plaintiff’s provable damages. ...
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The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
1. 1
BUSINESS LAW
-REMEDIES FOR BREACH
Prepared by,
Dr.Sangeetha R
Assistant Professor
Hindusthan College of Arts and Science, Coimbatore
2. 2
REMEDIES FOR BREACH OF CONTRACT
Where there is a right, there is a Remedy
Rescission
Damages
- Liquated damages and penalty
Quantum Meruit
Specific Performance
Injunction
Rectification or Cancellation
3. 3
Where there is a right, there is a remedy
A contract gives rise to correlative rights and obligations.
A right accruing to a party under a contract would be of no value if there were
no remedy to enforce that right in a Law Court in the event of its infringement
or breach of contract.
A remedy is the means given by law for the enforcement of a right.
When a contract is broken, the injured party (i.e., the party who is not in
breach) has one or more of the following remedies:
1. Rescission of the contract
2. Suit for damages
3. Suit upon quantum meruit
4. Suit for specific performance of the contract
5. Suit for injunction.
4. 4
1. RESCISSION
When a contract is broken by one party, the other party may sue to treat the
contract as rescinded and refuse further performance.
In such a case, he is absolved of all his obligations under the contract.
Example :
‘A’ promises B to supply 10 bags of cement on a certain day. ‘B’ agrees to pay the
price after the receipt of the goods. ‘A’ does not supply the goods. ‘B’ is discharged
from liability to pay the price.
The court may grant rescission –
(a) Where the contract is voidable by the plaintiff; or
(b) Where the contract is unlawful for causes not apparent on its face and the
defendant is more to blame than the plaintiff.
5. 5
The Court may, however, refuse to rescind the contract –
(a) Where the plaintiff has expressly or impliedly ratified the contract; or
(b) Where, owing to the change of circumstances (not being due to any act of the
defendant himself), the parties cannot be restored to their original positions; or
(c) Where third parties have, during the subsistence of the contract, acquired
rights in good faith and for value; or
(d) Where only a part of the contract is sought to be rescinded and such part is not
severable from the rest of the contract (Sec. 27 of the Specific Relief Act, 1963)
When a party treats the contract as rescinded, he makes himself liable to
restore any benefits he has received under the contract to the party from whom
such benefits were received (Sec.64).
But if a person rightfully rescinds a contract he is entitled to compensation for
any damage which he has sustained through non-fulfilment of the contract by
the other party (Sec.75).
6. 6
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 a contract.
The object of awarding damages for the breach of a contract is to put the
injured party in the same position, so far as money can do it, as if he had not
been injured, i.e., in the position in which he would have been had there been
performance and not breach.
This is called doctrine of restitution (restitution in integrum).
The fundamental basis of awarding damages is compensation for the pecuniary
loss which naturally flows from the breach.
The foundation of modern law of damages, both in India and England, is to be
found in the judgement in the case of Hadley v. Baxendale. Sec. 73 of the
Indian Contract Act which deals with “Compensation for loss or damage
caused by breach of contract” is based on the judgement in this case.
7. 7
Damages may be of four types :
(a)Ordinary damages : These are damages which actually arise in the usual
course of things from the breach of a contract.
(b)Special damages : Damages which may reasonably be supposed to have
been in the contemplation of both the parties at the time when they made the
contract as the probable result of the breach of it, are known as special
damages and may be recovered.
(c)Vindictive or exemplary damages : These damages are allowed in case of
the breach of a contract to marry or dishonour of a cheque by a banker
wrongfully.
(d)Nominal damages : Where the injured party has not suffered any loss by
reason of the breach of a contract, the Court may award a very nominal sum as
damages.
8. 8
(e) Damages for loss of reputation : Damages for loss of reputation in case of
breach of a contract are generally not recoverable.
(f) Damages for inconvenience and discomfort : Damages can be
recovered for physical inconvenience and discomfort. The general rule in this
connection is that the measure of damages is not affected by the motive or the
manner of the breach.
(g) Mitigation of damages : It is the duty of the injured party to take all
reasonable steps to mitigate the loss caused by the breach. He cannot claim to be
compensated by the party in default for loss which he ought reasonably to have
avoided.
(h) Difficulty of assessment : Although damages which are incapable of
assessment cannot be recovered, the fact that they are difficult to assess with
certainty or precision does not prevent the aggrieved party from recovering them.
The court must do its best to estimate the loss and a contingency may be taken into account.
9. 9
(i) Cost of decree : The aggrieved party is entitled, in addition to damages, to
get the cost of getting the decree for damages. The cost of suit for damages is
in the discretion of the court.
(j) Damages agreed upon in advance in case of breach : If a sum is named
in a contract as the amount to be paid in case of it breach, or if the contract
contains any other stipulation by way of a penalty for failure to perform the
obligations, the aggrieved party is entitled to receive from the party who has
broken the contract, a reasonable compensation not exceeding the amount so
named (Sec.74).
10. 10
LIQUIDATED DAMAGES AND PENALTY
‘Liquidated damages’ represent a sum, fixed or ascertained by the parties in the
contract, which is a fair and genuine pre-estimate of the probable loss that
might ensue as a result of the breach.
A ‘Penalty’ is a sum named in the contract at the time of its formation, which is
disproportionate to the damage likely to accrue as a result of the breach.
The court in India allow only ‘reasonable compensation’.
11. 11
3. QUANTUM MERUIT
A Right to sue on a quantum meruit (as much as earned) arises where a
contract partly performed by one party, has become discharged by the breach
of the contract by the other party.
This right is founded on an implied promise by the other party arising from the
acceptance of a benefit by that party.
12. 12
4. SPECIFIC PERFORMANCE
In certain cases the Court may direct the party in breach of a contract to
actually carry out the promise, exactly according to the terms of the contract.
This is called Specific performance of the contract.
13. 13
5. INJUNCTION
It is a mode of securing the specific performance of the negative terms of a
contract.
RECTIFICATION OR CANCELLATION
When through fraud or a mutual mistake of the parties, a contract or other
instrument does not express their real intention, either party may institute a
suit to have the instrument rectified.
In such a case, if the court finds that there has been a fraud or mistake, it may
ascertain the real intention of the parties, and may, in its discretion, rectify the
instrument so as to express that intention.
But his must not prejudice the right acquired by third persons in good faith
and for value.
If rectification is not possible, the court orders for the cancellation of the
contract.
