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By performance
By agreement or consent
By impossibility of performance
By lapse of time
By operation of law
By breach of contract
Kinds of Breach of
Contract
Actual Breach of Contract
Anticipatory/ Constructive Breach of
Contract
Consequences
Rescission
The court may grant rescission:
Where the contract is voidable by the plaintiff; or
Contract is unlawful for causes not apparent and the defendant is
more to blame
Restitution
Applicability (Sec 65):
When the contract becomes void or when the agreement
is discovered to void
Not to the contracts which are known to be void
Specific Performance
Directing party to carry out his performance
Discretionary remedy by court allowed in limited number of
cases:
Monetary consideration is not an adequate remedy
Non-existence of standard for ascertaining the actual damage
Probability that compensation in money cannot be obtained
Will no be granted where:
Damages are an adequate remedy
Contract is not certain, or is inequitable to either party
Contract is in its nature revocable
Contract is made by trustees in breach of contract
Contract is of personal nature
The contract is made by company in excess of its powers as
laid in MOA
Injunction
Restraining the wrong doer from doing or continuing the
wrongful act
Where a party is in breach of a negative term of
contract
Where the court can grant injunction:
Whereby a promisor undertakes not to do something; or
Which is negative in substance though not in form
Quantum Meruit
Literally means as much as earned
Right is not founded on original contract but arises of
contract, partly
performed by the one party
Implied promise by the other party to pay for what has
been done
Rectification or Cancellation
On account of Fraud/ mutual mistake of the
parties
Court may order rectification (Sec. 27 of Special
Relief Act, 1963) or cancellation
Must not prejudice the rights acquired by third
persons in good faith and for value
Damages
Damages arising naturally- Ordinary damages
Damages in contemplation of the parties- Special
damages
Vindictive or exemplary damages
Nominal damages
Damages for the loss of reputation
Damages for inconvenience & discomfort
Mitigation of damages
Difficulty of assessment
Cost of decree
Damages agreed upon in advance
Damages
Monetary compensation for the loss suffered
Object is to have Doctrine of Restitution (Restitution in
integrum)
Fundamental basis- Pecuniary Loss which naturally flows
from
the breach.
Foundation of Modern Law of damages: Hadley V.
Baxendale,
(1854) 9 Ex. 341
7. Mitigation of Damages:
Duty of the injured party to take all reasonable steps
Loss suffered due to the neglect of aggrieved party
9. Cost of decree:
Additional to damages
Cost of suit for damages as per the discretion of court
Payment of Interest
Rules:
1. Payment of interest incase of default
2. Payment of interest at higher rate
From the date of bond
From the date of default
3. Payment of compound interest on default:
At the same rate as simple interest
At a rate higher than simple interest
4. Payment of interest at a lower rate, if interest is paid on
due date