Page 75 - DCOM103_COMMERCIAL_LAW

Commercial Law Manpreet Kaur, Lovely Professional University

Notes Unit 7: Remedies for Breach of Contract

CONTENTS

Objectives
Introduction
7.1 Remedies for Breach of Contracts
7.1.1 Rescission of the Contract

7.1.2 Damages (S.75)
7.1.3 Remedy by way of a Suit on Quantum Meruit
7.1.4 Meaning of Specifi c Performance
7.1.5 Remedy of Injunction
7.2 Rectification or Cancellation

7.3 Summary

7.4 Keywords
7.5 Self Assessment
7.6 Review Questions
7.7 Further Readings

Objectives

After studying this unit, you will be able to:
Explain remedies for branch of contract
Discuss liquidated damage and penalty
Describe freedom to contract

Introduction

In last unit you have studied about different modes discharge of contract. A contract may be
discharged by performance, tender, mutual consent, subsequent impossibility, operation of law,
and breach. As you come to know that a contract may terminate by mutual consent in any of
the six ways viz. Novation, rescission, alteration and remission, waiver and merger. Novation
means substitution of a new contract for the original one. This unit will provides you a signifi cant
understanding related to breach of contract. This unit will also provide an explanation of quasi-
contracts.

7.1 Remedies for Breach of Contracts

When someone breaches a contract, the other party is no longer obligated to keep its end of the
bargain. From there, that party may proceed in several ways: (i) the other party may urge the
breaching party to reconsider the breach; (ii) if it is a contract with a merchant, the other party
may get help from consumers’ associations; (iii) the other party may bring the breaching party to

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