Remedies for Breach of Contract 💊 : LEGAL SOLUTIONS awarded to a plaintiff for the defendant's breach of contract
1. Damages
2. Specific Performance
3. Injunction
4. Rescission
5. Quantum Meriut
‼ DAMAGES IS ALWAYS INCLUDED
An order of the court requiring the defendant to pay the plaintiff MONETARY COMPENSATION for the loss/inconvenience suffered as a result of the breach
Section 74 Contracts Act 1950 🚩
🏁 Hadley v Baxendale
The plaintiff is entitled to receive from the defendant, compensation for any LOSS/DAMAGE caused to him
which the PARTIES KNEW when they made the contract to be likely to result from the breach of it
which AROSE NATURALLY in the usual course of things from the breach
TYPES OF DAMAGES
REMOTENESS OF DAMAGES : Damages cannot be 🚫 recovered for LOSSES that are TOO REMOTE / FAR-FETCHED
PLAINTIFF HAS A DUTY TO MITIGATE HIS LOSS
‼ Example : an employee dismissed from partnership turned down an offer of similar employment by one of the partners. The plaintiff was PENALISED for his FAILURE TO MITIGATE ‼
SUBSTANTIAL DAMAGES : Aim of a court award is to restore a plaintiff to his/her position prior to the injury/loss
NOMINAL DAMAGES : Damages awarded when a WRONG has OCCURRED, but NO ACTUAL LOSS was suffered
EXEMPLARY / PUNITIVE DAMAGES : 2 fold purpose
🚩 to PUNISH THE WRONGDOER
🚩 to make an example of the wrongdoer in order to DETER OTHERS from the same wrongful conduct
An order to the COURT DIRECTING the DEFENDANT TO FULFULL HIS OBLIGATIONS under the contract
Section 11, Specific Relief Act 1950 🚩
It is an equitable remedy granted at the discretion of the court AND not obtained as of right ‼
✅ SP WILL ONLY BE GRANTED : where damages will not be an adequate remedy
sale of IMMOVABLE PROPERTY - land, buildings, etc. 🏘
❎ SP WILL NOT BE GRANTED
in the case of a sale of MOVABLE PROPERTY (e.g. a car)
🚩 UNLESS the movable property is UNIQUE and damages will not be an adequate remedy
contracts for the sale of goods which CANNOT BE OBTAINED ELSEWHERE - antiques, valuable paintings, etc.
An order of the COURT DIRECTING the DEFENDANT NOT TO DO A CERTAIN ACT ❌
Equitable remedy not obtained as of right
TYPES OF INJUNCTION
❗PROHIBITORY INJUCTION
❗MANDATORY INJUNCTION
❗INTERCULTORY / INTERIM INJUCTION
This is an order COMMANDING THE DEFENDANT NOT TO DO SOMETHING. EXAMPLE: not to divulge confidential information obtained in a commercial
ORDER THE DEFENDANT TO UNDO SOMETHING HE HAD AGREED NOT TO DO.
EXAMPLE: may include return of property, keeping a gate to a road unlocked, clearing off trees from a right-of-way turning on electricity/heat in an apartment building
This is designated TO REGULATE THE POSITION OF THE PARTIES PENDING TRIAL
EXAMPLE : You own a home surrounded by trees & your neighbour claims the trees are on his property and is planning on cutting them down. While the dispute is pending, the court is likely to issue an interim injunction PREVENTING YOUR NEIGHBOUR FROM CUTTING DOWN THE TREES UNTIL THE MATTER IS HEARD & RESOLVED
⭐ An order of the court to TERMINATE OR CANCEL A CONTRACT due to the breach or default of the defendant
⭐ The purpose of rescission is to RESTORE the PARTIES TO THEIR ORIGINAL STATUS before the contract was made
Section 40, Contracts Act 1950 🚩
The PARTY SEEKING RESCISSION MUST be in a position to RESTORE THE BENEFITS he RECEIVED from the other
EXAMPLE: Buyer agreed to buy a piece of land that the seller thought he owned. Later it turns out that the seller does not have title to the property. Rescission would be the proper remedy.
EXAMPLE: Adam booked a cruise holiday with Paradise Tours & made payment in advance. 5 days before cruise, the cruise ship collided. Paradise Tours must refund the payment to Adam under the principle of restitution.
Quantum Meruit means ‘what one has earned’
Sections 71, Contracts Act 1950 🚩
EXAMPLE:
A contractor who was prevented by the contractee from completing the work after he had done a part of the work is entitled to get reasonable compensation for the work done
EXAMPLE:
You hire someone to clean your house for $100. If the cleaner had cleaned ½ the house and then you decide you didn’t want her to finish, she can demand $50 as Quantum Meruit