INDIAN CONTRACT ACT,

1872

Act lays down principles of

- formation,
- performance,
- enforceability
of contracts
And, rules relating to
Special type of contracts, viz.,
indemnity, guarantee, bailment,
pledge & agency.

Law of Contract
CONTRACT S.2(h)
An agreement enforceable by law
or,
an agreement made with an intention to create a legal obligation
(enforceable by law)

AGREEMENT S.2(e)
Every promise and every set of promises
forming the consideration for each other
PROMISE: S.2(b)
When the person to whom the proposal is made
signifies his assent thereto, the proposal is
said to be accepted. A proposal when accepted
becomes a promise
An agreement is an accepted proposal.

What is a Contract?
Sec.2(h) A contract is an agreement
enforceable by law.
The contract must be definite & its purpose
should create a legal relationship.
The agreements must satisfy two things viz.,
i) Intention to be bound, &
ii) consideration

Essentials of Contracts
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Agreement
Legal Obligation
Free & Genuine Consent
Parties Competent to Contract
Lawful Consideration
Lawful Object
Agreement not declared Void
Certainty of Meaning
Possibility of Performance
Necessary Legal formalities

Agreement
Has 2 elements viz.,

i) A proposal/offer, and
ii) Acceptance of that proposal/offer
Offeror and Offeree 2 parties
Same thing in same sense consent
A contract which is an agreement enforceable
in law has two elements viz;
i) An agreement
ii) Legal obligation

Agreement
Offer or Proposal
When a person indicates to another,
his willingness to do or abstain from doing
anything, with a view to obtaining an assent
of that other person to such act or
abstinence,
he said to make a proposal or offer
Acceptance
when the person to whom the proposal is
made signifies his assent thereto, the
proposal is said to be accepted.
In other words, acceptance is the
manifestation of the offeree of his consent to
the terms of the offer.

Legal
Obligation

Intention to create legal relationship

Belfour Vs Belfour Case (1919)

Social/Domestic agreements not contract. Parties
didnt intend to create legal relations
Commercial or social, domestic agreements

must have some presumptions to show legal

obligations to be a contract

Free
&
Genuine
Consent

Contract should not be obtained by

- misrepresentation
- Fraud
- Undue influence
- Coercion
- mistake
If any of above flaw exists in a contract it will
be held as void

Parties Competent to Contract

Who is a competent party?

Of majority age i.e., not a minor

Of sound mind lunatic, idiot,

drunkenness, status
Not disqualified by any law to which he is
subject
Flaw if any, contract becomes

unenforceable, except in exceptional

circumstances

Lawful Consideration
Is price for the promise of the other need

not be in terms of money

If not supported by consideration bare

consideration nudum pactum contract not

enforceable

Must be real & lawful

Each party must promise something and

receive something

Lawful Object
OBJECT
Not disapproved by law
Does not defeats any provision of law
Where it is not fraudulent
Not injurious to another person or property
Not immoral
Not opposed to public policy

Agreement not declared

Void
Although an agreement contains all the

elements yet, certain agreements are

declared illegal or void agreements, such as;
Restraining marriage
Restraining trade
Restraining legal proceedings
Wagering agreements

Certainty of Meaning
Specific (say cloth, oil type)
Shouldnt be vague
Punit Beriwala Vs. Suva Sanyal (1998)

Agreement to agree

Possibility of
Performance

Agreement to do an act impossible cannot be

enforced
Eg; Discover treasure by magic

Based on the maxim Law does not compel to

do what is impossible
(Lex non cogit ad aimpossibilia)

At the time of entering into contract, was

capable of being performed, but subsequently

become impossible or unlawful Known as
doctrine of supervening impossibility, doctrine
of frustration

Necessary Legal
formalities

Contract may oral or in writing

However, certain cases documented, comply
with formalities of writing, registering,
attestation, stamp duty
Made in presence of a witness
Agreements which must be writing
- time barred debt
- arbitration agreement
- lease agreement for more than 3 yrs.
- contract of insurance
- negotiable instruments
- memorandum & article of association
- transfer of immovable property & so on

Necessary Legal
formalities

Contracts which must be registered:

- promise w/o consideration out of natural

love & affection between parties of near
relation
- documents u/s 17 of Registration Act
- transfer of immovable properties under
TPA,1882
- Memorandum & Art. Of Association,
Mortgage and Charges under Co.Act,1956

Necessary Legal
formalities
Instruments those chargeable under
Indian Stamps Act,1894
- Negotiable instruments
- Insurance Policy
- Partition Deed
- Share/ Debenture Certificates
- Pledge
- Mortgage Deeds
Unstamped or under stamped ,
improperly stamped instruments not
admitted in evidence

All essential elements must exist together in a

contract, to be a legal and valid agreement or

simply called a contract

But, if any one of the elements is missing, the

contract is either voidable, void, illegal or

unenforceable in law

Types of Contracts
Contracts are classified in terms of their :
1. Validity or enforceability
2. Mode of formation
3. Performance

1. Validity or enforceable
contracts
Valid Contract

- Has all essential elements

Voidable Contract
Void Contract
Illegal Contract
Unenforceable Contract

- Some elements are missing

Voidable Contract
Affected by a flaw, say misrepresentation,

fraud, coercion, undue-influence, mistake

which may repudiated at the option of of

aggrieved party
Till it is set aside, it remains valid & binding
(patient-medical attdt-undue infl.)

Void Contract - S.2(i)

An agreement not enforceable by either

of the parties to it, is void

(restitution)

Such agreement is w/o any legal effect

ab-initio
function)

(eg; engaging auditorium, destroyed fire before

eg, contract with minor, mistake of fact,

unlawful object/consideration, w/o

consideration, restraint of
marriage/trade/legal proceedings,
uncertain /wagering/impossible
agreements, agreement to entering into
agreement in future

Contract valid at formation, becoming

void later subsequent

impossibility/illegality

Illegal Contract
Where object or consideration is:
Forbidden by law
Defeats provision of a law

(Contract for wheat-

Govt. ordnanace-sale wheat only from fair price shop)

Fraudulent
Involves injury to person/property
Immoral under law
Opposed to public policy
Wagering agreement (in Mumbai)
(agreemnt div. of gains acqrd by fraud/promise-employt for
payment)
(A bets with B, losses, reqst C 4 loan, C pays B/settles As loss. C
cannot recover from A)

Unenforceable Contract
They are neither void or voidable
Cannot be enforced in court as it

lacks some item of evidence such as

writing, registration or stamping

Unstamped /under stamped, if

stamp required for merely revenue,

defect can be cured by affixing
required stamp/penalty.

Technical defects cannot be cured.

Remains unenforceable eg, unstamped negotiable instrument

2. Mode of Formation
Express Contract

Where the terms of the contract are

stated clearly in words written or spoken
Implied Contract

Where terms of contract are inferred from

conduct of parties or circumstances (Bus travel)
Quasi-contracts
(Essence of a valid contract is on agreement)
Sometimes, obligation is created by law, where an
obligation is imposed on a party & action is allowed
to be brought by another party
(providing necessaries for minor/ leaving goods in anothers
place by mistake-use)

3. Performance
Executed Contract
Where parties have completely performed their
obligations & nothing remains to be done

Executory Contract
Where parties have still to perform their share of
obligation; something has been left out still to be
performed by both the parties . (Union of India Vs. Chaman lal
Loona(1957)

Uni-lateral
(pays bus fare-one party has fulfilled his part)

Bi-lateral
(A contract is a contract from the time it is made & not from
the time of performance is due.Performance can be at the
time contract is made or it can be postponed either in full or
part)

OFFER
When one person signifies to another, his
willingness to do or to abstain from
doing anything, with a view to obtaining
the consent of that other person towards
such act or abstinence, he is said to be
making an offer or proposal.

Types of Offer
Express Offer
Implied Offer
Specific Offer
General Offer
The offer is the starting point in the process
of making an agreement
Every agreement begins with one party
offering to do/sell something or to provide
a service etc

Essentials of an Offer
Terms of must be definite, unambiguos, & certain or
capable of being made certain
ii)
Every offer should be communicated, ie., offeree must
have the knowledge of the offer
iii) An offer cannot contain a term, the non-compliance of
which would to amount to acceptance
iv) Offer must have a intention of creating a binding,
mere statement does not amount to an offer
v)
Must have intention to create a legal relationship
vi) Must be made with a view to obtain assent thereto
vii) If no time is fixed within which the offer is to be
accepted, the offer does not remain open for an
indefinite period
viii) A offer must be distinguished from a mere invitation
to offer
ix) Offer may be positive or negative
x)
Two identical cross-offers do-not result in a contract
i)

Acceptance
Definition:
An acceptance is the act of manifestation by the
offeree of his intention to the terms of offer and
willingness to be bound by the terms of the
offer communicated to him.
An agreement emerges from the acceptance of

an offer.
Acceptance is the second stage of a contract.

Essentials of Valid
Acceptance

i)

ii)
iii)
iv)
v)
vi)
vii)

Must be absolute & unqualified &

according to the terms of offer
To be made by the offeree
Communicated to the offeror
After receiving the offer
Before the offer lapses-within the time
period
Mode of Communication, if any, must be as
prescribed in the offer
In case of rejection of offer a renewal of
offer required

Consideration
Definition:
It is the price for which the promise of the other
is bought.
A contract is basically a bargain between two
parties, each receiving something of benefit
to them. This something is described as
consideration.
Eg., Price for the goods sold

Essentials of Consideration
Essentials for a valid Consideration:
i) At the desire of the promisor
ii) May move from the promisee or any other
person
iii) Must be an act, abstinence or promise
iv) May be past ,present or future
v) Need not be adequate
vi) Must be real & competent
vii) Must be legal

No Consideration, No
Contract
The
general rule :
ex-nudo-pacto non-oritur actio i.e.,Out of a
naked pact, no cause of action can arise.
An agreement without consideration is void.
A promise in order to be enforceable must have
consideration, because only a consideration
can establish legal obligation & create legal
rights between the parties

No Consideration, No
Contract
Consideration is the very essential element of
any contract to create legal rights between
the parties
The law insists on existence of consideration if
a promise is to be enforced as legal obligation
The law provides no remedy to compel a party
to perform his promise on an agreement made
without consideration
A promise without consideration is null & void.

Exceptions to the Rule

Rule: (Sec.25) Agreement without consideration is
void
However, consideration not necessary in:
i) Agreement made on account of love &
affection
ii) Compensation for past voluntary service
iii) Promise to pay a time-barred debt
iv) Gifts
v) Agency

Doctrine of Privity of
Contract
Relationship subsisting between the parties

with contractual obligations.

Implies mutuality of will & creates a legal bond
or tie between the parties
It has 2 consequences:
1. Person not party to a contract cannot sue,
even though the contract is for his benefit &
he has provided consideration.
2. A contract cannot confer rights or impose
obligation arising under it on any person
other than the parties to it. Eg, if there is
contract between A & B, C cannot enforce
it.

Capacity of Parties

Essential element of enforceability agreement:

Parties should possess contractual capacity (S.10)
Contractual Capacity: Not defined
A person who is major, of sound mind, and is
not disqualified from contracting by law is
competent to enter into a valid contract
(S.11) inference of contractual capacity: contracting
parties should be capable of understanding it
and of form a rational judgment of its effect
on their interest. They should also not be
disqualified by law to enter into a contract

Persons Not Competent to

Contract
(S.11)
Mental Deficiency
i) Minors
ii) Of Unsound Mind
a) Idiots b) Insane c) Drunkards/intoxicated

Legal Disability
iii) Disqualified by law
a) Aliens b) Foreign sovereigns & ambassadors c) Convicts
d) incorporated institutions like joint stock companies,
societies, trusts etc. e) insolvents f) married women
(prior to 1956)

Minor
A contract with a minor is void ab-initio
(In England- minor contract is voidable at the option of minor)
A minor cannot be asked to refund any benefit received under

a void agreement
He is not estopped to plead minority even where he falsely
represents himself to be of full age
A minor s contract cannot be ratified by him on attaining
majority
He cannot be a partner in a partnership firm. He can be
admitted to the benefits of an already existing partnership
Minor can be a promisee or a beneficiary, He cannot bind
himself by a contract, but there nothing in Act which prevents
him from making other party to be bound to the minor.
His estate is liable to a person who supplies necessaries of life
to him
His parents/guardians are not liable to a minors creditors on
his breach of contract
He can be an agent

Free Consent
(S.13) defines consent as Two or more persons are
said to consent when they agree upon the same
thing in the same sense.
Free Consent (S.14): consent is said to be free
when it is not caused by
i)
Coercion
ii) Undue influence
iii) Fraud
iv) Misrepresentation
v) Mistake
A contract to be valid it is not only necessary that
parties consent, but also that they consent freely
Where there is consent, but not free consent, the
contract is voidable at the option of the party
whose consent was not free

Coercion
Coercion is a committing or threatening to commit
some act which is contrary to law
Consent is said to be caused by coercion when it is
obtained by either of the following acts:
i)
Committing or threatening to commit any act
forbidden by the IPC, or
ii) Unlawful detaining or threatening any property
Duress: English equivalent of coercion
Consequence of Coercion: when consent is caused
by coercion, the contract is voidable at the
option of the party whose consent was obtained.

Undue Influence
A contract is said to induced by undue influence where:
i)
A party is in a position to dominate the will of the
other, and
ii) Is in a position to obtain unfair advantage over the
other
Dominating position may be:
i)
One dominating, holds a real or apparent authority
over other eg. Master-servant
ii) Dominator stands in fiduciary relation to other eg,
father son
iii) Dominator makes a contract with a person whose
mental capacity is temporarily/permanently
affected eg, old illiterate person
Its a voidable contract

Fraud
Fraud is a misrepresentation of facts made to
induce to enter into a contract with
intention to deceive or cheat.
includes:
a) The suggestion, as a fact, of that which is
not true by one who does not believe it
to be true.
b) Active concealment of a fact by one
having knowledge or belief of the fact
c) A promise made without intention of
performing it
d) Any other act fitted to deceive
e) Any such act or omission which law
declares to be fradulent

Misrepresentation
Misrepresentation means an innocent mis- statement
of fact to the contract made by one party to
induce the other to enter into a contract. (no
desire of deceiving or defraud)
Classified into 3 groups:
1. A +ve assertion, in a manner not warranted (by
the information of the person making it), of that
which is not true, though believes it to be true.
2. Any breach of duty which, without intent to
deceive gives advantage to the person committing
it, by misleading another to his pre-judice
3. Causing, however innocently, a party to an
agreement to make a mistake as to the substance
of thing which is subject of agreement

Misrepresentation
Consequences:
Party wronged can;
1. Avoid agreement, or
2. Insist contract be performed & he be put in position in which
he would have been, if the representation made had been
true
Unlike fraud, misrepresentation doesnt entitle a party
to claim damages (subject to exceptions)
Exceptions:
Breach of warranty of authority of an agent. Where agent
believes that he has authority to represent the principal, while
in fact he has no such authority, agent liable to damages,
though he is guilty of innocent representation
Negligent representation made by one person to another
between whom a confidential relation exists, solicitor client,
father daughter.
However, if the party whose consent was caused by
misrepresentation had means of discovering truth with
ordinary diligence, he has no remedy.

Distinction between
Misrepresentation & Fraud

1.

2.

3.

Fraud is committed with intention to deceive while

entering into contract, whereas in
misrepresentation is due to innocence, without
intention to deceive or gain advantage.
Both voidable at the option of the wronged. But,
in case fraud, party wronged gets additional
remedy to sue for damages. In misrepresentation
claim for damages arises only in exceptional
cases.
In both cases contract can be avoided.
However, in case of misrepresentation, if the party
whose consent is caused had the means of
discovering the truth with ordinary diligence,
contract cannot be avoided.

Mistake
Mistake means erroneous belief or wrong notion
concerning some fact.
Consent is not free when agreement is entered into

under mistake. Parties entering into contracts should

not be under any error
They must agree on the same thing in the same sense
Consensus ad-idem must be present
Salomon describes contracts as error in cause
Consequence:
Mistakes render a contract void. Party complaining of
the mistake may repudiate it, i.e., need not perform it.
If executed, party receiving any advantage must restore
, or compensate for it, as soon as the contract is
discovered to be void.

Types Mistakes
Two types:
1.
2.

Mistake of Law
Mistake of Facts

Mistake of Law
i) Mistake of the law of the land
ii) Mistake of foreign law
iii) Mistake of private right of the parties

Mistake of Fact
I)
II)

Bilateral mistake
Unilateral mistake

1.
Mistake of
of land:
Mistake
oflaw
Law

The rule is ignorance of law is no excuse

A contract is not voidable because it was caused by a mistake
as to any in force in India.

2. Mistake of foreign law:

The maxim ignorance of law is no excuse applies only to
law of the country & not to foreign law.
The mistake of foreign law is treated as mistake of fact
S.21 A mistake as to a law not in force in India has the same
effect as a mistake of fact.

3. Mistake of Private right of the parties:

Mistake of the private right of the parties is also
excusable. Such mistake stands on the same
footing as the mistake of fact & the contract can
be avoided on the ground of mistake

Mistake
ofmistake:
Fact
1.
Bilateral
When both parties are under a mistake of
fact essential for the agreement, the mistake
called bilateral mistake of fact & the
agreement is void
(An erroneous value of the thing which forms
subject matter is not to be deemed a mistake
as to matter of fact)

Bilateral mistake may be:

A)
Mistake as to the subject matter
B)
Mistake as to the possibility of performance

Mistake of Fact

Mistake as to the subject matter

The subject matter may be of reg:
i)
ii)
iii)
iv)
v)
vi)

Existence
Identity
Title
Quality
Quantity
Price

Mistake as to the possibility of performance

If both parties believe that the agreement is
capable of being performed though it is not, the
agreement is void

Mistake of Fact
Unilateral mistake:
When one of the contracting parties is at mistake it
is known as unilateral mistake. Generally in such
situation the contract is not invalid.
S.22- A contract is not voidable merely because it
was caused by one of the parties to it under a
mistake as to a matter of fact
A party cannot be allowed to avoid a contract
merely on the ground of his own mistake which
may be due to his own negligence or carelessness
However, there are exceptions

Mistake of Fact
Exceptions (Unilateral mistakes):
1. Mistake as to the identity of the person

contracted with
2. Mistake as to nature of the contract
3. Mistake as to quality of the promise

Quasi Contract
Under certain circumstances, the law
imposes, certain rights & obligations
similar to that arises from a true
contract, even though there is no
contract, express or implied, between
parties.
Such contracts are termed as quasi- contracts
(Dr.Jenks)
This is based on maxim that no man must

grow rich out of another persons cost.

It is based on equitable principal, that a
person shall not be allowed unjustly to enrich
himself at the expense of another

Kinds of Quasi Contracts

Claim for necessaries supplied to a person

incapable of contracting on his account(S.68)

Reimbursement of a person paying money

due by another in payment of which he is

interested (S.69)
Obligation of person enjoying benefit of a

non-gratuitous act (S.70)

Rights and liabilities of the finder of lost

goods(S.71)
Liability of persons to whom money is paid or

things delivered by mistake or coercion(S.72)

Distinction between Quasi &

General Contracts
In General Contract obligation is created by

the consent of parties , whereas in quasi

contract it is imposed by law.
As far as claims for damages there is
similarity between because in case of breach
of a quasi contract (S.73) ensures same
obligations as of general contract
The injured party is entitled to same
compensation on default

Legality of Object

1.
2.
3.
4.
5.

In a contract consideration and object have very

little difference. One affects the other.
An agreement will not be enforceable if its object
or consideration is unlawful
According to (S.23) the consideration and the
object of an agreement are unlawful in
following cases;
If it is forbidden by law
If is of such a nature that if permitted, it
would defeat provisions of any law
If it is fraudulent
If it involves or implies injury to the person
or property of another
If the court regards it as immoral or
opposed to public policy

Performance of Contract
A contract creates obligations
Performance of Contract means carrying

out these obligations

(S.37) parties to contract must either perform
or offer to perform their respective promises,
unless such performance is dispensed or
excused under provisions of the Act or any
other law

Tender or Offer of
Performance
When a promisor offers performance of his

obligation at the proper time & place, it is

known as tender
(S.38) If valid tender is made & is not

accepted by the promisee, the promisor shall

not be responsible for non-performance (nor
shall he loose his rights under the contract)

Conditions for a Valid

Tender
1.
Must be unconditional
2. Must be made at proper time & place, where

promisee has reasonable opportunity of

ascertaining that the promisor is able &
willing there and then to do the whole of his
promise
3. The promisee must have reasonable

opportunity to see that the thing offered is

the thing contracted for

Persons entitled to demand

performance
1. Promisee
2. Legal Representative
3. Joint Promisee
4. Third Party

Persons bound to perform

1. By the Parties (S.37)
2. Promisor (S.40)
3. Representatives (S.37)
4. Agent (S.40)
5. Third Party (S.41)

Rule: The personal cause of action dies with

person concerned

Contracts which Need not be

Performed

1. If the parties mutually agree to substitute the

original contract by a new contract or rescind

or alter it (S.62)
2. If promisee dispenses with or remits wholly or
partly or extends the time or accepts any
satisfaction for it (S.63)
3. If the person at whose option the contract is
voidable, rescinds it (S.64)
4. If promisee neglects or refuses to afford
promisor reasonablefacility for performance
(S.67)

Termination of Contract
Termination is the discharge of contractual
relationship between parties
Modes of Termination of Contract:
1. By Performance or Tender
2. By Mutual consent
3. Subsequent Impossibility of Performance
4. By Operation of Law
5. By lapse of Time
6. By Breach of Contract

Termination of Contract
1. By Performance or Tender

Where parties have fulfilled whatever

contemplated contract ends
Tender: Tender has the same effect of as
performance. If promisor tenders
performance of his promise but the other
party refuses to accept, the promisor stands
discharged of his obligation

Termination of Contract
2. By Mutual consent:
i)

Novation ( Substitution)

ii)

Rescind (Cancel)

iii)

Alteration

iv)

Remit (Lesser fulfillment)

v)

Waiver (Relinquish)

vi)

Merger (discharge by a inferior right to superior

right)

Termination of Contract
3. Subsequent Impossibility:
Inherent void ab-initio
Void due to subsequent impossibility (Doctrine of
frustration)
i)
ii)
iii)
iv)
v)

Destruction of subject matter of contract (for no fault of

promisor)
By death or disablement of the parties (personal causation)
By subsequent illegality
By declaration of war
Non-existence of particular state of things

(Exceptions where impossibility does not render contract as void:

difficulty-expensive, commercial loss, failure of third person,
strike-lockout-civil disturbance, failure of an object)

Termination of Contract
4. By Operation of Law:
i)

By death

ii)

By insolvency

iii) By merger
iv) By the unauthorised alteration of terms

Termination of
5.
By lapse of Time:
Contract

Contracts must be performed within the period of

limitation (Limitation Act)

The Limitation Act prescribes different limitation

period for different kinds of contract

If contract is not performed & the party aggrieved

does not enforce his rights within limitation period,
he is debarred from enforcing the contract

After expiry period court will not enforce contract,

thus contract gets discharged

Termination of Contract
5. By Breach of Contract:

Refusal of performance is a breach. When

one party refuses to perform, other party is
discharged from its liability
Anticipatory breach- breach before the due
date of actual performance by refusal to perform
or does an act which makes the performance
impossible
Consequences of anticipatory breach
i)

Rescind & sue for damages at once

b)
Treat contract as operative & wait for time of performance &
hold party liable for non-performance
anticipatory breach does not by itself become discharge
of contract. Discharge becomes effective on party
aggrieved elects to rescind the contract
a)

Termination of Contract
ii)
a)
b)

Actual breach
at the time when performance is due
During the course of performance

When promisor offers to perform subsequently,

whether it should be accepted or refused by the
promisee & sue for breach would depend on whether
time was an essence of the contract
If time is an essence of the contract is voidable at the
option of the promisee
In case time is not essence of contract, it is not voidable,
the promisee is entitled to compensation for breach

Remedies for Breach of

Contract
The relief available are:
i)

Rescission

ii)

Damages for loss sustained

iii) Decree for Specific Performance

iv) Injunction
v) Suit on Quantum Meruit

Remedies for Breach of

i)Contract
Rescission

Aggrieved party may sue to treat contract as rescinded

Aggrieved party is freed from all liabilities under the

contract

Aggrieved party is entitled to compensation(S.75) for loss

sustained on breach of contract

ii) Damages
a.
b.
c.
d.

Ordinary
Special
Vindictive /punitive/exemplary
nominal

Remedies for Breach of

Contract
iii) Specific Performance:
Where damages is not a adequate remedy,
court may direct the party to breach to carry
out his promise
S.P not granted- a) Monetary compensation is adequate, b)
Contract of Personal nature to marry, c) Contract
beyond objects laid in Mem. of Association

iv) Injunction:
A party to breach of negative terms of contract (party does
something which he is not supposed to do), Court may
prohibit him from doing so, through an order known as
injunction

Remedies for Breach of

Contract
v)
Suit on Quantum Meruit:
The phrase means as much as is merited (earned)
Rule- A party which has not performed its promise to its
entirety, cannot claim performance from the other
However, there is an exception to this rule on the basis of
Quantum Meruit

Right to claim/sue on Quantum Meruit arises where a

contract partly performed has been discharged by the
breach of the other party