Breach Of Contract
Mr Lexi tells her that Arjun has committed a “Breach of contract” and explains the following concepts:
What is breach of contract?
What are the remedies for breach of contract?
- Recession of contract
- Sue for damages
- Sue for specific performance
What is recession of contract?
What are damages? (Section 73 of the Indian Contract Act, 1872)
What are the kinds of damages?
- Liquidated damages: When the party failing to perform his obligation in the contract agrees to compensate the loss by paying money it is called liquidated damages.
- Unliquidated damages: When the amount payable to compensate the loss suffered in a contract is assessed by the Court or appropriate authorities it is called as unliquidated damages.
What is specific performance?
Example: A decided to buy a parcel of land from B. B then refuses to sell. The courts can order B to perform his duties under the contract and sell the land to A.
What is an injunction?
In A Nutshell
- When a contract is breached the party can claim relief as per the remedies provided by the Indian Contract Act,1872
- There are four kinds of remedies for breach of contract – recession, specific performance, damages and injunction
- Damages are compensation claimed by parties who have faced the breach of contract. There are two kinds of damages – 1. liquidated damages 2. unliquidated damages.
- Specific Performance is a remedy in which a parties to the contract goes to court to impose the other party to complete the obligation as mentioned in the contract
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