Remedies for Breach of Contract ⚖️
When a contract is broken, the law provides cures (remedies) to the injured party.
1. Suit for Damages (Money) 💰
The most common remedy.
- Ordinary Damages: Natural loss (Market Price - Contract Price).
- Special Damages: Indirect loss (e.g., Loss of Profit). Must be communicated at time of contract. (Hadley vs Baxendale).
- Exemplary/Vindictive Damages: To punish. (Only for Breach of Promise to Marry or Wrongful Dishonour of Cheque).
- Nominal Damages: Small amount (₹1) just to prove a point when no real loss occurred.
2. Suit for Specific Performance 🏗️
Court orders the party to DO what he promised.
- Used when: Money is not an adequate remedy (e.g., Sale of rare antique, Land).
- Not used when: Personal skill involved (cannot force someone to sing).
3. Suit for Injunction 🛑
Court orders the party to NOT DO something.
- Example: Actress agreed to act only for Warner Bros. She tried to act for others. Court issued Injunction to stop her.
4. Quantum Meruit 🧱
"As much as earned".
- Payment for work done before the contract was discharged.
Hadley vs Baxendale
The Mill Shaft broke. Carrier delayed delivery. Mill stopped. Huge loss of profit. Court held: Carrier is NOT liable for loss of profit because he was not told that the mill was completely stopped. Rule: Special damages only if communicated.
Quiz Time! 🎯
Test Your Knowledge
Question 1 of 5
1. Damages awarded to cover natural/direct loss are called:
💡 Final Wisdom: "The law tries to put you in the position where you would have been if the contract was performed. Not to make you rich, but to make you whole." 🩹
Next up: Information Technology Act - E-Contracts! 💻