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
Please note: This information has been made available to you for your benefit on an ‘as is’ basis, and is only for your information. It does not constitute legal advice and cannot substitute professional legal advice. Our disclaimer policy can be viewed here ( Disclaimer)