Saturday, July 9, 2011

Remedies for Breach

When a party is in breach of contract , the other party - the injured party ( or innocent party ) , may claim one or more of the following remedies :

(A) Damages

  • A remedy providing money compensation for a civil wrong with the aim to restore the injured party to the position he would have enjoyed had the contract been performed as agreed . 
  • General rules :
  • -The injured party is entitled to damages arising naturally i.e. according to the usual course of things resulting from the breach 
  • -If the injured party claims special damages for any loss sustained , he must show that they are such that the other party knew , at the time of making the contract , that the special loss is likely to results from the breach , but 
  • Such compensation is not to be given for any remote and indirect loss or damage sustained as a result of the breach .

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