Remedies For Non Performance of Contracts

REMEDIES FOR NON-PERFORMANCE OF CONTRACTS
When one of the parties involved in a contract is unable to perform the contract or not to do
so by the standard required or within the time frame that party is said to have committed a
contract breach. A contract, would be of no value, if there weren't enough laws and
obligations to protect the rights of the parties involved. The 'guilty party' is the party
committing breach of contract and 'injured' or 'aggrieved' party is the other party.
1) Recession of Contracts
If one of the two parties fails to fulfil its obligation in a contract, the other party can
withdraw or rescind the contract and refuse to perform his obligations. Recession is
unwinding of a transaction. It is considered to be an equitable remedy and discretionary. As
recession is supposed to be mutual between parties, the party seeking recession is bound to
return every benefit he has earned from the contract. If one party affirms the agreement via
his actions, a third party acquires rights, or the agreement has been substantial
performance by a party, the court may decide not to rescind the contract.
2)Quantum Meruit
Quantum merit literally means "as much as earned". When a party in a contract stops the
other party from fulfilling its obligations, the aggrieved party can ask compensation for the
amount of work it has put in. The aggrieved party should be paid a reasonable amount for
the work he has done.
3)Injunction
An injunction in contract is when the court as a party to restrict from doing something that
is not described in the contract. Basically, it’s a decree for specific performance, but in a
negative contract. In this prohibitory injunction, the court will ask the guilty party to refrain
from doing something that is causing a breach of contract.
4)Sue for damages.
Damages are the monetary compensation that the aggrieved party can claim for the
suffered losses or damages. A breach of contract might place an aggrieved party at some
disadvantage, the court will ask the guilty party to take responsibility and pay for the losses.
Even when the Plaintiff is able to prove the losses and damages, legislation may not full
compensate his monetary loss. When a contractual obligation is broken, the party who faced
the is entitled to compensation, which can take many different kinds and forms. According
to Section 73 of Contracts Act and other judgements, some of the types of damages are
a) General and Special damages.
These losses which arise naturally or ordinarily due to breach in course of actions.
They are logical consequences of the breach, which are unavoidable. The
damages for such losses are called General or ordinary damages. There won’t be
any damages for indirect losses. Special damages are for the losses that do not
occur naturally out of the breach, such damages can be recoverable if there was
sufficient contemplation when the contract was made.
b) Nominal Damages.
When the breach of contract did not cause any actual loss or damages to the
aggrieved party, no damages are recovered. However, for the act of breach of
contract, the court will ask the defendant to pay a nominal amount as
compensation. The plaintiff is awarded nominal compensation when he is not able
to prove the loss that he suffered due to the breach of contract by the defendant.
The plaintiff merely wants to establish infringement of his contractual rights and
doesn't seek any actual compensation.
c) Exemplary or Aggravated Damages.
It is an exception for general damages, in some cases the court can award
compensation for losses other than monetary losses considering the motives of
the defendant. Aggravated damages. These are the compensation for the mental
distress and emotional suffering experienced by the aggrieved party due to the
breach in contract. Exemplary damages are punitive; they are punishments for
the defendant and not to recover any damages suffered by the plaintiffs.eg. Addis
v Gramophone Company Ltd.i
d) Liquidated and Unliquidated Damages.
Liquidated damages are when both parties have agreed to the damages. In all
other cases, the courts will assess, quantifies and decides the damages.
5)Suit for Specific Performance.
In certain cases of a breach of contract, damages are not the appropriate ways to solve the
issue. The court can ask the guilty party to carry out the obligations from his side. This
direction from the court is called specific performance for the suit from the aggrieved party.
This is generally seen as an exception.
i
https://swarb.co.uk/addis-v-gramophone-company-limited-hl-26-jul-1909/

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REMEDIES FOR NON-PERFORMANCE OF CONTRACTS

4)Sue for damages.

a) General and Special damages.

c) Exemplary or Aggravated Damages.

d) Liquidated and Unliquidated Damages.

5)Suit for Specific Performance.

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