The five basic remedies for breach of contract include the following: money damages, restitution, rescission, reformation, and specific performance. There are a variety of remedies available for a contract breach. 3. In addition to suing for damages, the buyer can request that the money they've already paid be returned. Remedies for Breach of Contract . In such cases, the Court may, at the suit of the party not in breach, direct the patty in breach to carry out his promise as per the terms of the contract. This is known as specific performance of the contract. The appropriate compensation or … 1. However, specific performance shall not be granted in the following cases: 1. Assuming that a contract is created and executed in a legally valid manner and for a legal purpose, failure to follow the terms of the agreement can have legal consequences. Where something is done without any intention to do gratuitously. Courts may also order an equitable remedy called specific performance, where the party in breach may be ordered to fulfill its contractual obligations. 3. Sometimes, the damages are not an adequate remedy for breach of the contract. E.g., breach of contract to marry, is honour of customer’s cheque by the bank without any proper reason. In such cases, the Court may, at the suit of the party not in breach, direct the patty in breach to carry out his promise as per the terms of the contract. 1. A money damage award includes a sum of money that is given as compensation for financial losses caused by a … Here the compensation for the work done may be recovered on the basis of quantum meruit. This is a condensed version. The law provides a multitude of remedies against those who breach their contracts. 64 of the Act provides that the party who rescinds the voidable contract, shall if he has received any benefit there under from the other party, restore such benefit to the person from whom it was received. by Practical Law Canada Commercial Transactions This Practice Note discusses the application of equitable remedies under contract law. When compensatory damages are awarded, a court orders the person that breached the contract to pay the other person enough money to get what they were promised in the contract elsewhere. The Court refused to order specific performance because the contract was of a personal nature but granted an injunction against A to restrain him from singing anywhere else. Parties may rescind if they are the victims of a vitiating factor, such as misrepresentation, mistake, duress, or undue influence. Exemplary damages can be awarded only when the feelings of the injured party are considered. 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That is, they are not due to the natural and probable consequences of the breach of the contract. Damages In legal terms, this is called a remedy, and the most common remedy when one party is found to be in breach of a contract is a monetary payment. The term “Damages” means monetary compensation payable by the defaulting party to the affected party for the loss suffered by him when contract was breached. This is what is called breach of contract. In literal sense, the expression “Quantum Meruit” means, “as much as earned “. Sometimes, the damages are not an adequate remedy for breach of the contract. 2. Exemplary or Vindictive Damages: These damages are awarded against the party who has committed a breach of the contract with the object of punishing the erring as defaulting party and to compensate the aggrieved party. The main purpose of awarding damages is to put the injured person in as good a position as he would have been if performance had been rendered as promised. Special Damages: Special damages are those damages that are payable for the loss arising on account of some special or unusual circumstances. When one of the party commits a breach of the contract, the other party becomes entitled to any of the following reliefs: When one of the parties commits breach of contract, other party shall further treat the contract as void or rescinded. These damages are very small in amount. 4. Further, the person who rightfully rescinds the contract is entitled to compensation for any damage he faced from non-fulfillment of contract. 2.2 Three remedies available for breach of contract. In such cases, the other person is bound to make the payment if he accepts such services or goods, or enjoys their benefit. Some of the cases where Court may direct specific performance are as follows: 1. 3. 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