Business Law

Presented By : M . Zubair
Presented To : Sir Nasir Abbas

ADP – Banking & Finance

rd
3 Semester
TOPIC NAME

Remedies Of Breach Of Contract

5 Remedies of Breach of Contract
Meaning

A breach of contract occurs when a party to a contract fails to perform his obligations under the contract.Aremedy is the action which an aggrieved party takes
against the guilty party for the enforcement of rights as a result of breach of contract.The following remedies are available to the aggrieved party.

Suit For Specific Performance

It is a decree issued by court to require the guilty party to compelete his obligation according to the term of contract.It is a discretionary remedy.It is granted when
the aggrieved party satisfied the court that the remedy of damages is inadequate.The aggrieved party can sue for specific performance in the following cases:

(a). When monetary compensation is not an adequate remedy.

(b). When it is difficult to calculate the actual damages.

(c). When compensation in money cannot be obtained.

Specific performance is not granted in the following cases:

(a). When damages are an adequate remedy.

(b). When the court cannot supervise the performance of contract e.g. construction contract.
(c). When the contract involves personal skill, taste and qualification.
(d). When one party to the contract is a minor

EXAMPLES

(a). B agrees to sell his plot to C, who wants to erect a factory. B commits breache. On the suit of C, B is directed by the court to perform the contract.
(b). A agrees to sell B his painting but commits breach. B cannot sue for damages. A shall be ordered to make specific performance to B.
Suit for Injunction:
It is the order of court by which a party is prevented form breaching the contractual obligations. It means to demand a court’s
stay order. Injunction means an order of a court which prohibits a person from doing a paticular act. Where a party to a
contract does something which he promised not to do, the court may issue an order an order prohibiting him from doing so.

EXAMPLES:
(a) W agreed to sing at Lu’s theatre and for no one else. Afterwards, W contracted Z to sing at another theatre and refused to sing
for Lu. Held, W could be restrained by injunction from singing for Z. (Lumly vs. Wagner)

(b) G agreed to take the supply of electricity only from M Co. G was, restrained by an injunction from buying electricity from any
other company. (Metropolitan Electric Supply Co. vs. Ginder)
Thank You