Breach of Contract

Breach of Contract

Whenever contract is breached by one of the Party in a contract, the other party comes across some suffering. Therefore, contract act has given certain rights to such suffering party. Those rights are called remedies for breach of contract. Those are given below:

·                     Right to sue for Damages.

·                     Rights to sue for Specific Performance.

·                     Rights to sue for Injunction Order.

·                     Rights to sue for Quantum Meruit.

·                     Rights to sue for Recession of Parties.

·                     Right to sue for Damages

Different types of Damages: Damages in legal terms called Compensation. Whenever one of the party in the Contract comes across breach of Contract, the other party rights to sue for damages.

Rights to sue for Specific Performance: At times the suffering party may file a suit claiming specific performance form the party which has breached the contract. But this type of suit very rarely becomes successful. The following are some circumstances where suit for specific performance will not be taken into consideration.

·                     Example 1: When performance depends upon personal talent and the party has list Such talent.

·                     Example 2: When court thinks that it is just and equitable to arrange for compensation.

Rights to sue for Injunction Order: The order issued by court restrict in a person from doing a particular thing is called injunction order. Upon breach of contract the suffering party may proceed legally for injunction order.

·                     A case on this point is Barner Bros.Vs Nelson. In this case a contract gets formed between A and B according to which B has to conduct his dance programs at A`s theater only for certain period. But B breaches the contract and arranges his programs at other theaters also before expiry of agreed period. A`s sues for injunction order. Then court issues injunction order saying that B should not conduct his programs at other theaters before expiry of agreed period.

Rights to sue for Quantum Meruit: Whenever a party performs the contract partially and then the other party breaches the contract, Suit can be filed claiming proportionate remuneration. It is called suit for quantum meruit.

·                     A case on this point is Flanch Vs Karlbarn. In this case A is editor of a magazine and B is a writer. According to their contract B has to supply story to A`s magazine for certain number of weeks for a particular consideration. B supplies story for some weeks and there after A closes down his magazine. B sue`s for proportionate remuneration and it is allowed by court.

Rights to sue for Recession of Parties: At times the suffering party may sue for recession for contract.

·                     Example: A contract has got formed between A and B on 1st January. According to their contract A has to supply 100 pairs of ready made dresses to B, on 1st April on 28th March strike by transport companies is announced which will be called off on 3rd April. It should be noted that A cannot supply on 1st April. But B is in need of those dresses only on 1st April. Hence B can sue for recession on contract.