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A presentation on

REMEDIES FOR BREACH OF CONTRACT


Being presented by

Nauman Ali

Gulraiz Ali
Ismaeel Ali Hamza Waqar

REMEDIES FOR BREACH OF CONTRACT


Presented to Prof. Mudassir Latif Rawn Presented by Nauman Roll # 17 Gulraiz Roll # 21 Hamza Roll # 37 Sohaib Roll # 38 Ismaeel Roll # 55

WHAT IS BREACH OF CONTRACT?


A breach of contract occurs where a party to a contract fails to perform, precisely and exactly, his obligations under the contract.

Ismaeel Roll # 55

TYPES OF BREACH OF CONTRACT

Actual Breach

Anticipatory Breach

ACTUAL BREACH
Actual breach occurs where one party refuses to perform his side of the contract on the due date or performs incompletely and does not inform the other party.

ANTICIPATORY BREACH
Anticipatory breach occurs where one party announces, in advance of the due date for performance, that he intends not to perform his side of the bargain.

GULRAIZ (21)

REMEDIES OR RIGHTS OF AGGRIEVED PARTY

Remedies Or Rights Of Aggrieved Party


1.
2. 3. 4. 5.

Suit for Rescission of contract Suit for Damages Suit upon quantum meruit Suit for specific performance Suit for an injunction

(1) Suit for Rescission of Contract:

When one of the parties to a contract commits breach the other party may rescind the contract and need not to perform his obligation under the contract.

Illustration:

Mr. Bilal contract to supply certain goods to Mr. Salman for Rs 10,000 with in two days. If Mr. Bilal does not supply the goods with in the specific time, Mr. Salman need not pay the price Mr. Salman may treat the contract as rescinded Mr. Salman can file a suit for rescission and claim damages.

(2) Suit for Damage:


The aggrieved party has right of sue for damage. Such damages are a monetary compensation awarded to the aggrieved party for the loss or injury suffered by him as a result of the breach of contract.

KINDS OF DAMAGES:

1) Ordinary or Compensatory Damages

Ordinary damage are naturally and directly arises on account of unusual circumstances. No compensation can be claimed for any indirect loss or damage due to breach of contract. The aggrieved part can only claim damages for loss, which is the direct result of such breach.

Illustration:

A Company agree to sell 50 compute to City computer College on a fixed day. Company does not know that is a newly establish College which starting the classes first time. Company break the promise and City College have no computer on the date of commencement of classes and loss of new students. City College can claim damages for the breach of contract by not delivering the computers on time.

SOHAIB (38)

2)SPECIAL DAMAGES

According to sec 73 special damages are those which arises on account of the special or unusual circumstances. The non performance of the promise gives the right to promisee to claim ordinary damages as well as some special damages.

Conditions For Special damages:


Contracting

pasties must be known about the special circumstances at the time of contract. Where aggrieved party already knows the special circumstances, he cannot claim special damages. Damages arise due to breach of contract. Contracting parties must have knowledge about the loss.

Illustrations

3)EXEMPLARY DAMAGES

The damages which are awarded with a view to punishing the guilty party for the breach and not by way of compensation for the loss the suffered by the aggrieved party are called exemplary damages.
Breach

of a contract to marry. Dishonour of a cheque by a banker when there are sufficient funds to the credit.

Illustrations

4)LIQUIDATED DAMAGES

According to Sec.74 when at the time of formation of contract the contracting parties fix the amount of damages, it is consider as liquidated damages.

Illustrations

5)NOMINAL DAMAGES

Where the aggrieved party has not actually suffered any loss or damages due to breach of contract, the damages received by him are nominal damages.

NAUMAN (17)

3-SUITE UPON QUANTUM MERIT

The phrase quantum merit literally means as much as is earned or in proportion to the work done.

Q: When a right to sue upon quantum merit arises?

Illustration:

(A)

(B)

Cases Of Claim On Quantum Merit:


a)

Contract discovered void (Sec 65).

Cases Of Claim On Quantum Merit:


a) b)

c)

d)
e)

f)

Contract discovered void (Sec 65). Where something has been done without any intention to do something gratuitously (Sec 70). Contract is divisible. One Party refuse to perform contract. When there is promise to render but there is no agreement as to reward. When the completion of the contract has been prevented by other party.

4-SUIT FOR SPECIFIC PERFORMANCE


Specific performance means the actual carrying out of the contract as agreed. Under certain circumstances an aggrieved party may file a suit for specific performance ,i.e., for the decree by the court directing the defendant to actually perform the promise that he has made.

Cases Of Specific Performance:


Specific Performance granted in following cases:
a)

Where amount of damages are not sufficient to compensate the loss of aggrieved party. Where compensation cannot be obtained.

b)

c)

When there is no standard for ascertaining the actual damages caused by nonperformance.

Specific performance is not granted in the following cases:


Where monetary compensation is an adequate relief. Thus the courts refuse specific performance of a contract to lend or borrow money. Where the court cannot supervise the actual execution of the contract, e.g., a building construction contract. Where the contract is for personal services, e.g., a contract to marry or to paint a picture. Minor party. Uncertain contract.

i.

ii.

iii. iv. v.

Illustration:

(A)

(B)

HAMZA (37)

SUIT FOR AN INJUCTION

When one of the contracting party does not follow the terms of contract, the court may issue an order directing the concerned party to follow the terms of contract. This is called suit for injuction. The injured party can file a suit in the court of law to obtain an order not to break the terms and conditions of the contract.

Illustration

Contraction between management of Humza college and Mr.Kamran.

A and b

TH

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