Remedies for Breach of Contract

When there is a breach of contract between the parties, there are possibly two solutions for them:-

  • Take an action for breach of the contract or
  • Take an action for specific performance of the contract

Compensation for breach of contract:-

For the pay in the breach of contract, there will also be two ways, which are-

Compensation for loss (damage) due to breach of contract

The most suitable remedy for the breach of contract can be Damages. When any contract is breached between the parties then one is the sufferer among them. The party that suffers because of the breach is liable to receive the compensation for the damage caused by the party who has broken the contract. The compensation should be made for any indirect loss but direct damage and when the damages are sustained because of the breach.

Stipulated Penalty for breach of contract

While making a contract between parties, they agree to a certain amount to be paid to the party who would receive the amount if another party breaches the contract in the name of damage occurred. The party is entitled for the same if the actual damage is proved. The compensation in such situations generally does not exceed the amount decided upon or the penalty stipulated.

Rescinding of the contract

If any individual or party rightfully rescinds the contract then he/she will receive the damage amount caused due to non-fulfillment of the contract stated.

Specific Performance

The happening or execution of the contract as agreed upon is stated to be the specific performance among the parties. As per the law, the specific performance can be enforced under following cases:-

1). At the point when there exists no standard for determining the genuine loss brought about by the non-execution of the contract consented to be done; or

2). At the point when the contract consented to be done is such that remuneration in cash for its non-execution would not bear the cost of sufficient help.

Exemptions (special cases) to above stated are:-

  • Agreement by a proprietor for repair of the leased premises;
  • Contract for the home loan of resolute property;

3). Contract for the offer of any products like machinery equipments. Nevertheless, an agreement to convey uncommon coins would be particularly enforceable, as pay would not constitute satisfactory help in such a case;

4). A consent to pay cash by portions;

5). An understanding for lending cash.


An agreement which runs into such moment or various subtle elements or which is so subject to the individual capabilities or volition of the parties, or generally from its period is such, that the court can’t uphold particular execution of its material terms, can’t be particularly upheld.

Another circumstance when an agreement cannot be particularly upheld is the place “the agreement is in its period definable”. An agreement is said to be definite, when a party to the agreement can put it to an end.

An agreement the execution of which includes the execution of a constant obligation, which the Court cannot regulate, cannot be particularly implemented.

Persons who cannot obtain specific performance:

The particular execution of an agreement cannot be gotten for an individual who could not be qualified for recoup remuneration for the break of agreement.

Particular execution of an agreement cannot be upheld for an individual:

1) Who has gotten to be unequipped for performing the agreement that on his part stays to be performed, or

2) Who disregards any vital term of the agreement that on his part stays to be performed, or

3) Who acts in misrepresentation of the agreement, or

4) Who adamantly acts at change with, or in subversion, of the connection expected to be built by the agreement.