Breach of Contract | Types | Remedies for Breach of Contract | Business Law | Study at Home with me - Deepstash

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Remedies in case of breach of Contract

Remedies in case of breach of Contract

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 the law for the enforcement of the right.

When a contract is broken, the injured party has one or more of the following remedies:-

  1. Rescission of the contract
  2. Suit for the damages
  3. Suit upon quantum meruit
  4. Suit for the specific performance of the contract
  5. Suit for the injunction


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Rescission of the contract

Rescission of the contract

When a contract is broken by one party, the other party may sue to treat the contract as rescinded or refuse further performance.

In such a case, he is absolved of all his obligations under the contract.


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Suit for the damages

Suit for the damages

Damages are the monetary compensation given to the injured party by the Court for the loss or injury suffered by him by the breach of the contract.

The object of awarding damages for the breach of the contract is to put the injured party in the same position, so far as money can do it as if had not been injured.

This is called the 'Doctrine of Restitution'.


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Suit upon quantum meruit

Suit upon quantum meruit

It literally means 'as much as earned'.

A right to sue on the basis of quantum meruit arisesd where a contract, partly performed by one party, has become discharged by the brewach of the contract by the other party.


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Suit for the specific performance of  the contract

Suit for the specific performance of the contract

In certain cases of breach of a contract, damages are not an adequate remedy.

The court may, in such cases, direct the party in breach to carry out his performance according to the terms of the contract.


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Suit for the injunction

Suit for the injunction

When a party is in breach of a negative term of the contract (i.e., where he is doing something which he promised not to do), the Court may, by issuing an order, restrain him from doing what he promised not to do.

Such an order of the Court is known as 'injunction.

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