Remedies for Breach of Contract - Coggle Diagram
Remedies for Breach of Contract
What are the remedies for a breach of contract?
Action for the agreed contract price
The purpose is to restore the innocent party to the same financial position they would have been in if the contract had been performed.
Factors affecting the amount of damages that can be claimed
Remoteness of damages,
Type of loss,
Action for agreed contract price
In certain circumstances a party may sued for non-payment of the price agreed in the contract rather than damages.
The amount is stated in the contract as action price
This is a court order given to the party in breach of contract, to perform their obligations under the contract.
Principles of specific performance
Unique subject matter,
Claimant acted equitably,
Possible to enforce,
Generally not in employment / personal service contracts.
A court order directing a person not to take action which breaks the contract
Different types of injunctions
Mandatory – requires performance,
Prohibitory – prevents a certain act,
Perpetual – final and binding,
Interim – pending trial of the issue concerned.
Limitations of injunctions
Will not be used if damages is an equitable remedy
Will only enforce a negative stipulation
Treating the contract as ended
it isnot a remedy for breach of contract but means giving back a benefit that has been obtained.
means a party should be awarded a sum representing ‘as much as they had earned'