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[REMEDIES FOR BREACH OF CONTRACT ] December 12, 2010

                                             Remedies for breach of contract



Suit for specific performance       Suit for injunction              Suit for damages for the loss suffered        Quantum Meruit



                                                                                 Types of damages

                                                                                        Actual or normal damages
                                                                                        Nominal
                                                                                        Vindictive
                                                                                        Special
                                                                                        Remote
    Quantum Meruit
     Quantum Meruit means as much is merited (deserved or earned). A person can, under certain circumstances, claim payment for
     work done or goods supplied without any contract and in cases where the original contract has terminated by breach of contract
     by one party or has become void for some reason. This is known as Doctrine of Quantum Meruit.

        The rules regarding the doctrine of quantum merit are stated below:

       1. The injured party entitlement to claim reasonable compensation
       2. A person who has done something under the contract which is discovered to be unenforceable by law for some technical
          reason is entitled to get compensation.
       3. Presumption of law regarding an implied agreement to pay for services rendered.
       4. Where a contract is not divisible into parts and lump sum of money is promised to be paid for the entire work, part performance
          does not entitle a party to claim payment quantum meruit.
       5. Nothing can be recovered for quantum meruit when there is no evidence of an excess or implied promise to pay for work already
          done.
       6. A person guilty of breach (violate) of contract cannot claim payment on quantum meruit.

vxplain 2 score more-- post your doubts to us at vxplain@gmail.com                                                                 Page 1
[REMEDIES FOR BREACH OF CONTRACT ] December 12, 2010


    Suit for injunction

       Injunction means an order of the court. In case of breach of contract, the injured party can under certain circumstances get a
       negative injunction, i.e., an order prohibiting a party from doing something.

    Suit for specific performance

       By specific performance, the court, directs the party committing the breach of contract to perform the promise according to the
       terms of the contract. Specific performance of the contract can be granted under the Specific Relief Act, 1877.

    Types of damages

       Damages are compensation for the damage or losses suffered by the aggrieved party when the other commits the breach.

              Actual or normal damages are those which naturally arise out of the breach of contract and which can be certainly clamed by the
               aggrieved party i.e. the difference between the contracted price and market value.

              Nominal damages are sanctioned by the court of law in order to the superiority of the aggrieved party over the party
               committing a breach even if the aggrieved party would not have suffered any damage.
              Vindictive damages can be claimed by the aggrieved party if there is any loss of feelings, emotions or reputation due to
               the breach.

               For Eg. Bouncing of a cheque which is properly drawn on a account with adequate balance amount would give the
               right of claiming vindictive damages to the aggrieved party because his reputation or goodwill is at stake Similarly, if
               one of the parties to a marriage breaks it on the day of marriage the other party can claim vindictive damages for loss of
               reputation Similarly, reputed personalities can sue a newspaper magazine or any other media if they publish any
               blasphemous(offensive) statement about him.




vxplain 2 score more-- post your doubts to us at vxplain@gmail.com                                                                     Page 2
[REMEDIES FOR BREACH OF CONTRACT ] December 12, 2010


              Special damages are those which can be claimed by the aggrieved party only if there is a provision for the same in the
               contract made.
               E.g. any business opportunity lost and losses arising due to the same should have been provided in the agreement & proved
               to be claimed
              Remote damages are those which are not in any way connected to the breach of contract and therefore cannot be
                Claimed.




vxplain 2 score more-- post your doubts to us at vxplain@gmail.com                                                                 Page 3

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CPT Law - Remedies for Breach of Contract

  • 1. [REMEDIES FOR BREACH OF CONTRACT ] December 12, 2010 Remedies for breach of contract Suit for specific performance Suit for injunction Suit for damages for the loss suffered Quantum Meruit Types of damages  Actual or normal damages  Nominal  Vindictive  Special  Remote  Quantum Meruit Quantum Meruit means as much is merited (deserved or earned). A person can, under certain circumstances, claim payment for work done or goods supplied without any contract and in cases where the original contract has terminated by breach of contract by one party or has become void for some reason. This is known as Doctrine of Quantum Meruit. The rules regarding the doctrine of quantum merit are stated below: 1. The injured party entitlement to claim reasonable compensation 2. A person who has done something under the contract which is discovered to be unenforceable by law for some technical reason is entitled to get compensation. 3. Presumption of law regarding an implied agreement to pay for services rendered. 4. Where a contract is not divisible into parts and lump sum of money is promised to be paid for the entire work, part performance does not entitle a party to claim payment quantum meruit. 5. Nothing can be recovered for quantum meruit when there is no evidence of an excess or implied promise to pay for work already done. 6. A person guilty of breach (violate) of contract cannot claim payment on quantum meruit. vxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 1
  • 2. [REMEDIES FOR BREACH OF CONTRACT ] December 12, 2010  Suit for injunction Injunction means an order of the court. In case of breach of contract, the injured party can under certain circumstances get a negative injunction, i.e., an order prohibiting a party from doing something.  Suit for specific performance By specific performance, the court, directs the party committing the breach of contract to perform the promise according to the terms of the contract. Specific performance of the contract can be granted under the Specific Relief Act, 1877.  Types of damages Damages are compensation for the damage or losses suffered by the aggrieved party when the other commits the breach.  Actual or normal damages are those which naturally arise out of the breach of contract and which can be certainly clamed by the aggrieved party i.e. the difference between the contracted price and market value.  Nominal damages are sanctioned by the court of law in order to the superiority of the aggrieved party over the party committing a breach even if the aggrieved party would not have suffered any damage.  Vindictive damages can be claimed by the aggrieved party if there is any loss of feelings, emotions or reputation due to the breach. For Eg. Bouncing of a cheque which is properly drawn on a account with adequate balance amount would give the right of claiming vindictive damages to the aggrieved party because his reputation or goodwill is at stake Similarly, if one of the parties to a marriage breaks it on the day of marriage the other party can claim vindictive damages for loss of reputation Similarly, reputed personalities can sue a newspaper magazine or any other media if they publish any blasphemous(offensive) statement about him. vxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 2
  • 3. [REMEDIES FOR BREACH OF CONTRACT ] December 12, 2010  Special damages are those which can be claimed by the aggrieved party only if there is a provision for the same in the contract made. E.g. any business opportunity lost and losses arising due to the same should have been provided in the agreement & proved to be claimed  Remote damages are those which are not in any way connected to the breach of contract and therefore cannot be Claimed. vxplain 2 score more-- post your doubts to us at vxplain@gmail.com Page 3