The document discusses various remedies available for breach of contract, including:
1. Rescission of contract, which allows the non-breaching party to treat the contract as cancelled.
2. Suit for damages, which provides monetary compensation for losses suffered. Damages can be ordinary, special, or nominal.
3. Suit for specific performance, which requires the breaching party to fulfill their contractual obligations.
4. Injunction to prevent breaches of negative obligations.
5. Quantum meruit, which allows recovery of payment for work already performed if the contract is discharged due to breach.
9. ???
Arjun promises to supply Chaudhary Audi 4 on a
certain day. Chaudhary agrees to pay the price
after the delivery of the car.
Arjun does not deliver the car.
Is there a breach ?
10. Remedies : Breach of Contract
1. Rescission of contract
2. Suit for damages
3. Suit upon quantum meruit
4. Suit for specific performance of the
contract
5. Suit for injunction
11. 1. Rescission
When a contract is broken by one party, the other
party may sue to treat the contract as cancelled
and refuse further performance.
Example: A promises B to deliver 10 bags of cement on
a certain date. A does not supply bags, so B is
discharged from liability to pay the price.
If some advance was given by B, it can be recovered
from A
12. 2. Damages:
It is monetary compensation allowed to injured
party for loss or injury suffered by him.
Case: Hadley v. Baxendale
X’s mill was stopped by the breakdown of the
machine. X gave the machine to Y, who is a carrier
to transport the machine to company for repairing
it. X didn’t tell Y that there may be losses to him if
delay will happen. Y caused a delay.
Can X recover the losses from Y?
13. Types:
A. Ordinary damages
B. Nominal damages
C. Special damages
D. Vindictive damages
E. Damages for inconvenience and discomfort
F. Damages for loss of reputation
G. Pre defined compensation in case of default
14. A. Ordinary Damages
Injured party can recover from the other party such
damages as naturally and directly arouse
Damage/Compensation = Market price – Contract price
NOTE:
No remote cause to be entertained
15. Example :
A contracts to sell and deliver 500 quintals of wheat to B
at Rs.775/quintal, the price to be paid at the time of
delivery.
The price of wheat rises to Rs.800 per quintal and A
refuses to sell the wheat.
What are the damages to B?
16. B. Special Damages
Under special circumstances, if out of a breach special
loss will happen to the party and is brought in notice of
the other party, it is special damage.
Example:
- Building house, made further contract of taking rent of
the houses. Not built on due date, was informed of this,
bear compensation which he is supposed to give to third
party. (cost, rent, compensation)
17. ????
Raja contracts to buy from Brij at Rs.950
per quintal rice , no time fixed for delivery.
Raja afterwards informs Brij that he will not
accept the rice if tendered to him.
The market price of rice on that day is
Rs.930 per quintal.
How much Brij is entitled to receive from
Raja?
18. C. Vindictive/Exemplary or Punitive Damages
Vindictive means punishment/punitive damages, in
law of contract not awarded except in these cases
These have been awarded
(a) for a breach of promise to marry;
(b) for wrongful dishonour of a cheque by a banker
possessing adequate funds of the customer.
D. Nominal Damages:
small damage of few rupees
19. • Damages for inconvenience and discomfort:
e.g. Transported to wrong place
• Damages for loss of reputation
• Pre defined compensation in case of default
20. 3. Specific Performance
: Court directs the party who has breached the contract to
perform specific performance required in the contract.
• when compensation in money is not adequate
• No standard format to find out damages
21. 4. Injunction
Where party is in breach of a negative term
of a contract. Doing something not
promised, court can refrain from doing not
promised by order.
22. 5. Quantum Meruit:
• means as much as earned
• when one party has done some work and
other party discharges the contract by
breach of contract, first party claim
quantum meruit to pay for what has been
done
23. ???
A cow was sold with a warranty that it was
free from a disease. The cow was
suffering from foot and mouth disease at
the time of sale. As a result of sale, not
only the cow purchased died but infected
the other cows of the purchaser also.
What damages can be recovered in this
case?
24. ???
C let a music hall to T for series of
concerts for certain days. The hall was
accidently burnt down before the first
concert.
Is the contract enforceable?
25. ???
• H hired a flat from K for June 26,27,2013
for witnessing a procession of King. K
knew H’s purpose though not mentioned in
the contract. The procession got cancelled
due to King’ illness.
• Can H cancel the contract?
26. ???
D engaged H on 12th of April to enter into his
service and accompany him to tour. The
employment was to commence on 1st
June. On 11th May D wrote to H telling that
his services will no longer be required.
H brought an action against D. Will he
succeed?
27. ???
A agreed to erect a plant for B by 31st
january,1991.The contract provided that B
should pay Rs.500 per month for every
month that A took beyond the agreed
date.A was late by 6 months, B sued A for
Rs.6500 the actual loss caused to him by
result of the delay.
To what damages, if any, B is entitled?
28. ???
B was an employee in a partnership firm for
a certain period. The firm was dissolved
before the expiry of the period for which he
was employed.
Two of the partners continued the business
and offered to employ B. B refused.
What damages can he claim from breach of
contract?
29. ???
The wife of a person died from tin
poisoning caused by tinned tomato puree
bought from a dealer.
What damages can the husband claim?
30. ??
S agreed to act as sales manager for
Honda co. for a period of 3 years at a
monthly salary of Rs.100000. S worked for
6 months and then left and joined Hero co.
at a higher salary.
What are the rights of Honda co.?