{"id":1771,"date":"2020-05-07T13:38:02","date_gmt":"2020-05-07T08:08:02","guid":{"rendered":"https:\/\/lawyerinc.net\/learning\/?p=1771"},"modified":"2020-05-07T13:48:24","modified_gmt":"2020-05-07T08:18:24","slug":"what-are-the-remedies-for-breach-of-contract-in-india","status":"publish","type":"post","link":"https:\/\/lawyerinc.net\/learning\/what-are-the-remedies-for-breach-of-contract-in-india\/","title":{"rendered":"What are the Remedies for Breach of Contract in India"},"content":{"rendered":"\n<p>In general terms, the word \u201ccontract\u201d means a legally binding agreement reached between two parties. Further, a contract must contain terms over which the courts have the authority and responsibility to enforce. Also, as per the provisions of section 2(h) of the Indian Contract Act, 1872,<strong> a contract is an agreement which is enforceable by law. In this article, we will be dealing in detail about the remedies for breach of contract. The phrase remedies for breach of contract include recission of contract, injunctions, suing for damages, suing for specific performance, and quantum merit.<\/strong><\/p>\n\n\n\n<p>Further, a contract is said to be\nbreached or broken when any of the concerned parties either fails or refuses to\nperform its promised task under the contract. Furthermore, Breach of Contract\nis a legal cause of action in which either or more parties do not honor an\nenforceable agreement, and due to the non-performance of promises, the said\ncontract renders impossible.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lawyerinc.net\/learning\/what-are-the-remedies-for-breach-of-contract-in-india\/#What_is_Breach_of_a_Contract\" title=\"What is Breach of a\nContract?\">What is Breach of a\nContract?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lawyerinc.net\/learning\/what-are-the-remedies-for-breach-of-contract-in-india\/#What_are_the_Consequences_of_a_Breach_of_the_Contract\" title=\"What are the Consequences of a Breach of the Contract?\">What are the Consequences of a Breach of the Contract?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lawyerinc.net\/learning\/what-are-the-remedies-for-breach-of-contract-in-india\/#Remedies_for_Breach_of_Contract\" title=\"Remedies for Breach of Contract\">Remedies for Breach of Contract<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lawyerinc.net\/learning\/what-are-the-remedies-for-breach-of-contract-in-india\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Breach_of_a_Contract\"><\/span><strong>What is Breach of a\nContract?<\/strong><strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Whenever\na promise or an agreement is broken or non-performed by any of the parties,\nthat\u2019s when a contract is breached. So, when either of the parties fails to\nkeep their end of the said agreement or does not fulfill their responsibilities\nas per the terms and conditions of the contract, it is known as the breach of\ncontract.<\/p>\n\n\n\n<p><em>Further, Section 37<\/em>&nbsp;of the Indian Contract Act,1872, states that\nthe parties to a contract are under a legal obligation to perform or offer to\nperform, their particular promises under the said contract, until and unless\nsuch performance is being dispensed with or excused under the provisions of the\nIndian Contract Act or of any other prescribed law.&nbsp;<\/p>\n\n\n\n<p>As per <em>section 39 of\nthe Indian Contract Act, 1872,<\/em>&nbsp;where a party to the contract has denied\nto perform or disabled himself from performing the said promise on a complete\nbasis, the other party concerned may put an end to the contract, until and unless\nthat other party has impliedly or expressly showed its consent for the\ncontinuance of the contract. <\/p>\n\n\n\n<p>Moreover, if in case the\nother party opts to put an end to the contract, then the contract is considered\nto be broken and results in a breach of contract by the party not performing or\nrefusing to perform his or her promise under the contract. This is known as&nbsp;<em>repudiation<\/em>.\nThus, repudiation will occur when either of the party refuses to perform his or\nher part or makes it impossible or improbable for him to perform his part of the\ncontract in each of the cases in such a way as to show an intention not to\nfulfil his part of the contract.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Consequences_of_a_Breach_of_the_Contract\"><\/span><strong>What are the Consequences of a Breach of the Contract?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Section 73 to 75 of Chapter VI of the Indian Contract\nAct,1872 dealt with the consequences of the breach of the contract. These\nconsequences basically act as the remedies for breach of contract that can be\noffered to the aggrieved party of the said contract.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Remedies_for_Breach_of_Contract\"><\/span><strong>Remedies for Breach of Contract<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following listed are the few remedies for breach\nof contract available to the aggrieved party &#8211;<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Recession of a Contract \u2013<\/strong> Recission of a contract in one of the available remedies for breach of contract. In this, whenever one of the parties to the contract does not obey his obligations, then the other concerned party has a right to rescind the contract and also to refuse the performance of his obligations and promises. Further, as per section 65 of the Indian\u00a0Contract Act, 1872, the party that rescinds or cancels the contract must reinstate any benefits he got under the said agreement. Whereas according to section 75, the party that rescinds or cancels the contract is authorized to receive damages or compensation for such a\u00a0recession.<\/li><li><strong>Sue for Damages \u2013<\/strong> According to section 73 of the Indian Contract Act, 1872, the party who has suffered damages, as the other party has broken promises, then the said party can claim compensation for the loss incurred or the damage caused to them in the normal course of\u00a0business. Further, it is noteworthy to note that such type of damages is not payable if the loss incurred is abnormal in nature, i.e., not happens in the ordinary course of business. Furthermore, as per the contract law, there are two types of damages as listed below \u2013<ol><li><strong>Liquidated Damages<\/strong> \u2013 Sometimes, the parties to the said contract will agree beforehand regarding the amount payable in case of a breach. This is called as the liquidated damages<\/li><li><strong>Unliquidated Damages<\/strong> \u2013 Here, in this case, the amount payable for damages due to the breach of contract is determined by the courts or any other appropriate authorities. Moreover, the concept of unliquidated damages is further bifurcated into six subparts. The following listed are the types of unliquidated damages \u2013 <ol><li><strong>Nominal Damages<\/strong> &#8211; These are basically the small amount of money provided to the plaintiff or the aggrieved person when he has not suffered any significant losses or injury caused. Further, these damages are given when there has been a breach of contract, but the aggrieved party fails to prove the actual loss incurred due to the breach of contract.<\/li><li><strong>Substantial Damages<\/strong> &#8211; This compensation is provided where although the extent of the breach of the contract is proved, but there are some uncertainties concerning the calculation of the amount.<\/li><li><strong>Aggravated Damages<\/strong> &#8211; In this case, the damage determined previously exceeds due to the malafide conduct of the defendant. As a result, the damage caused to the plaintiff or the aggrieved person is aggravated because of the conduct or the manner in which the injury has been caused to the plaintiff.<\/li><li><strong>Exemplary Damages<\/strong> &#8211; These are those damages which are provided to set an example in the society that such crimes will not be tolerated at any cost. Hence, the actual idea behind this specific damage is to punish the defendant not to ascertain any benefit out of him.<\/li><li><strong>General Damages<\/strong> &#8211; Damages that arise out during the normal course of action are known as general damages. <\/li><li><strong>Special Damage<\/strong> &#8211; These are the damage that ascends out of the circumstances or situation which were reasonably anticipated or projected by the parties during the time of entering into the contract. Further, instead of the normal proof of damage, the special proof of such damage is needed in order to claim special damage.<\/li><\/ol><\/li><\/ol><\/li><li><strong>Sue for the Specific Performance \u2013 <\/strong>This means the party involved in the breach will really have to carry out all his duties and obligations as per the contract. Further, in certain cases, the courts may also insist that both the parties should carry out the agreement. So, if in case any of the parties fails to perform the said contract, the court may pass any order it may deem fit to do so. Also, this is known as the decree of specific performance and is issued instead of damages.\u00a0 <\/li><\/ol>\n\n\n\n<p><div class=\"shadow3\"><strong>For Example &#8211; <\/strong>S decided to buy a piece of land from K. K then refuses to sell. So, in this particular case, the courts may order K to perform his or her duties under the said contract and sell the land to S.<\/div><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Injunction &#8211;<\/strong> Injunction is one of the most significant remedies for breach of contract. As, injunction is fundamentally like a decree for specific performance but is granted for a negative contract. An injunction is basically a court order limiting a person from doing a particular act. So, a court may grant an injunction in order to stop a party of the said contract from doing any act he promised not to do. Further, in the case of a prohibitory injunction, the court totally stops the happening of an act. Whereas in the case of a mandatory injunction, the court will stop the continuance of an act which is unlawful.<\/li><li><strong>Quantum Merit \u2013 <\/strong>The term Quantum&nbsp;merit in a literal sense means \u201cas much is earned.\u201d At times, when one of the parties of the contract is restricted by the other party from finishing his performance of the contract, then, in that case, he can claim quantum merit. This means that the aggrieved party must be paid with a reasonable remuneration for doing his part in the contract. This could either be the remuneration of the services that he has provided or the value of the work done by him.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><div class=\"shadow2\">After meticulously analyzing\nall the sections relevant to the breach of contract, it will be right to state\nthat the Indian Contract Act, 1872, has provided remedies for breach of\ncontract in both the liquidated damages and the unliquidated damage in the Act.\nFurther, the former is pertinent when any amount is specified or prescribed in\nthe contract form its commencement. Whereas the later, when no amount has been\nprescribed or specified, and the court must award a certain amount after duly\nanalyzing the facts and circumstances of the said case.<\/div><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In general terms, the word \u201ccontract\u201d means a legally binding agreement reached between two parties. Further, a contract must contain terms over which the courts have the authority and responsibility to enforce. Also, as per the provisions of section 2(h) of the Indian Contract Act, 1872, a contract is an agreement which is enforceable by [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":1772,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What are the Remedies for Breach of Contract in India - LawyerINC<\/title>\n<meta name=\"description\" content=\"The phrase remedies for breach of contract include recission of contract, injunctions, suing for damages, suing for specific performance, and quantum merit.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lawyerinc.net\/learning\/what-are-the-remedies-for-breach-of-contract-in-india\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What are the Remedies for Breach of Contract in India - 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