Remedies for Breach of Contract

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 Meaning of Remedy
• Is the method by which an injured
party enforces a right or corrects a
loss
• The remedies available to the injured
party will depend on the nature of
breach and the results will differ
between the parties.

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 Remedies

Specific
Rescission Damages Performance

Quantum
Injunction
Meruit

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 Rescission

Is an Allows an To cancel
equitable innocent the
remedy party contract

fulfil his part of the Refuse to

contract perform or

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 Damages
The main purpose of damages is to enable the
innocent party to receive monetary compensation
from the party responsible for the breach of contract

To put the injured party back in position that they

would occupied if the contract had been performed as
originally intended.

Damages are calculated on the basis of looking at

what the position should have been if the contract
had been properly performed.

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 • When a contract has been broken,
the party who suffers by the breach
is entitled to receive from the party
S 74 who has broken the contract,
compensation for any loss or
damages caused to him .

• Hadley v Baxendale
• Victoria Laundry (Windsor)
Cases Ltd v Newman Industries Ltd.

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 Specific Performance

• Is a discretionary order granted by the

courts directing a person to carry out
their obligations under the contract.
• It is not generally used in breach of
contract actions unless prove to be
inadequate.
• Particularly contracts involving land or
where subject matter is unique.

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 Injunction

• An injunction is an order of the court

restraining a person from the doing of
an act.
• It will be granted to enforce a negative
stipulation in a contract where
damages would not be an adequate
remedy.

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 Quantum Meruit

• Means ‘as much as he has earned’

• Only arises in cases of part
performance.
• The contract may be discharge by
breach, but where the contract is for
goods or services, there is a new
implied contract imposed by law on the
party taking the benefit that it will pay a
reasonable amount for the quantum or
portion given.
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