Remedies for Breach of Contract

Remedies for Breach of Contract: Imagine the Indian Contract Act as a guidebook for contracts, full of details on how things should play out. It’s not just a rulebook, though; it’s like a friend that helps you out when things go sideways in a deal. So, if someone breaks their promises in a contract, this Act steps in with solutions. It’s like a superhero with remedies for both parties, making sure nobody feels left out in case of a breach. It’s the justice-seeker, ensuring fairness and keeping things in check when agreements hit a bump.

About Remedies for Breach of Contract

When someone doesn’t hold up their end of a deal or breaks a promise, we call it a breach of contract. It’s like when one party doesn’t follow through on what they agreed to in the contract. But don’t worry, if you find yourself on the wrong end of a broken promise, there are some ways to make things right. The party who got let down has a few options for fixing the situation and getting what they were promised. Let’s check out what can be done to set things straight.

Recession of Contract

If someone in a contract doesn’t hold up their end of the deal, the other party has the right to cancel the contract and not carry out their own responsibilities. According to Section 65 of the Indian Contract Act, if you cancel the contract, you have to give back any gains you got from the agreement. Section 75 adds that you can also get compensation or damages for canceling the contract. It’s like saying, “If you’re not going to play fair, I’m not playing either, and I want something in return for the trouble.”

Sue for Damages

Section 73 makes it pretty clear: if one party messes up and breaks promises, the other party that’s been hurt by the mess-up can ask for compensation. It’s like saying, “Hey, you caused me trouble, so make it right.” But, here’s the catch – you can only get compensated for the regular kind of trouble, not the super weird and unusual stuff.

The law talks about two types of damages: one is when both parties agree on a specific amount of money to settle things if there’s a mess-up (that’s called liquidated damages), and the other is when the courts or some other official folks figure out how much money should make things right (that’s unliquidated damages). So, it’s like setting things straight when one party drops the ball in a deal.

Sue for Specific Performance

If someone breaks a contract, they might have to actually do what they promised instead of just paying for any harm caused. In some situations, a court could tell the person who messed up to follow through on their agreement, instead of just paying money for any problems that came up.

For instance, let’s say A wanted to buy a piece of land from B. But then, B changes their mind and doesn’t want to sell anymore. The court could step in and tell B, “Hey, you made a deal – go ahead and sell that land to A like you promised.”


An injunction is basically like a decree for specific performance but for a negative contract. An injunction is a court order restraining a person from doing a particular act. So a court may grant an injunction to stop a party of a contract from doing something he promised not to do. In a prohibitory injunction, the court stops the commission of an act and in a mandatory injunction, it will stop the continuance of an act that is unlawful.

Quantum Meruit

Imagine you’re working on a project with someone, and suddenly, they throw a curveball that stops you from completing your part of the deal. It’s frustrating, right? Well, in the legal world, there’s this concept called “quantum meruit,” which basically means “as much as is earned.”

So, if you find yourself in a situation where the other party is preventing you from finishing your part of the bargain, you have the right to claim quantum meruit. In simple terms, it’s like saying, “Hey, I’ve put in the effort, and I deserve fair compensation for the work I’ve already done, or the value I’ve added to the project.” It’s a way to make sure you get your due for the time and energy you’ve invested.

Read Also: Time, Place And Manner of Performance of Contracts

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