Discharge of contract,

quasi - contract
&
remedies for breach of
contract
Subarna Ghosh
DISCHARGE BY PERFORMANCE

The contract is discharged

after both the parties fulfill
the contractual liabilities
and obligations as required
under the contract clause
DISCHARGE BY MUTUAL CONSENT

 Novation- In case of Novation (where the parties

agree to substitute a old contract by a new one)
 Remission- Parties agree to dispense the
contracts
 Rescission- By the aggrieved party in a voidable
contract
 Agreement- Change in one or more of material
terms of contract
DISCHAGE BY SUBSEQUENT IMPOSSIBILITY
OR ILLEGALITY
 DISCHAGE BY LAPSE OF TIME

If one party fails to perform the contract, the

other party can file a suit against that but within
a particular period of time. If that is exceeded,
the party is debarred from instituting a suit in the
court of law. The Limitation Act provides for a
time of 3 years in case of simple contracts
 Discharge by
Operation of Law
Insolvency- Merger-a By
an new contract unauthorized
Death- one adjudicated is created alteration of
party dies insolvent is with higher the terms of
discharged security, old written
of his debts one merges. document
Discharge by Breach

Actual- Failure Anticipatory- REMEDIES

of one party to one party
-
perform repudiated the
without any contract before Rescission
legal excuse the fixed time Damages
 QUASI - CONTRACT

A situation in which Law imposes upon one person,

on grounds of natural justice, an obligation similar to
that which arises from a true contract, although no
real contract is made between the parties
 Cases treated as Quasi Contract

Responsibility
Supply of Reimburse of finder of
necessities ment to a goods- to take Liability of
to a person person Obligations reasonable care the person
incapable paying of a person of the goods in to whom any
money due enjoying case of non- thing has
to perishable
by another- benefits of goods, and in
been
contract- but the non- delivered
case of
like minor person gratuitous perishable due to
or person paying act goods, pay the mistake or
of unsound should have amt gained by coercion
sale of the
mind interest goods
 REMEDIES FOR BREACH

Rescission of ●
When one party commit a breach, the other party need not
perform her/his part of the contract
Contract
Suit for Specific ●
Filed under the Specific Performance Act
●
A decree for actual performance of the contractual liability by the defaulter
Performance
An order of the Court restraining a person from doing a particular act
Suit for Injunction
●

●
Issued in case a person does something he promised not to do

Suit for Damage Monetary compensation allowed to the aggrieved party for the loss or injury suffered
●

The principle behind damages is compensation

●

Suit upon Quantum Means ‘as much as earned’ or ‘in proportion to’
●

Such suits are filed where one party has already done part performance of the contract, and then
●

Meruit there is a breach or contract becomes void

 DAMAGES MAY BE:
●
●These are charges which may be fairly or reasonably be considered as
Ordinary Damage arising naturally from the breach of contract
●Ordinary damages are restricted to the direct consequences of the breach
●

●
●Arise due to some unusual or special circumstance
Special Damage ●
●It is necessary that the special circumstances resulting in special damage
is brought to the notice of the other party

Exemplary ●
●Awarded by way of punishment to the defaulter but this will depend upon
the extent of injury to the other party
Damage ●Eg: Breach of contract to marry, Dishonour of cheque
●

• Where the real damage is nominal and a small sum of money

Nominal Damage
•Such damages are awarded to establish a right to a decree of breach of
contract to the aggrieved party

Liquidated • Where a sum is fixed up in advance for a probable loss that is likely to
arise out of breach
Damage
THANK YOU….