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Unit 6: Remedies for Breach of Contract
Pooja, Lovely Professional University

Unit 6: Remedies for Breach of Contract Notes

CONTENTS

Objectives
Introduction
6.1 Remedies for Breach of Contracts
6.2 Liquidated Damages and Penalty
6.2.1 Meaning of Specifi c Performance

6.2.2 Remedy of Injunction
6.2.3 Remedy by way of a Suit on Quantum Meruit
6.3 Freedom to Contract
6.4 Summary

6.5 Keywords
6.6 Self Assessment
6.7 Review Questions
6.8 Further Readings

Objectives

After studying this unit, you will be able to:
z Explain remedies for branch of contract

z Discuss liquidated damages and penalty
z Describe freedom to contract

Introduction

In last unit you have studied about the performance contract and different modes discharge
of contact. 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 significant understanding related to breach of contract. This unit will also
provide an explanation of quasi-contracts.

6.1 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
an agency for alternative dispute resolution; (iv) the other party may sue for damages; or (v) the
other party may sue for other remedies.

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