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Remedies and Damages for Contract Breach

This chapter covers the remedies for breach of contract, including specific performance, restitution, and damages. It outlines ordinary and special damages, their definitions, and the rules governing their claims. Additionally, it provides case study tips for calculating damages related to goods/services not delivered and money not paid.

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4 views1 page

Remedies and Damages for Contract Breach

This chapter covers the remedies for breach of contract, including specific performance, restitution, and damages. It outlines ordinary and special damages, their definitions, and the rules governing their claims. Additionally, it provides case study tips for calculating damages related to goods/services not delivered and money not paid.

Uploaded by

sarmadaliaquarius
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

CAF 04: Business Laws

Chapter 09: Consequences for Breach of a Contract Overview:


Secret Sheet for Quick Revision This chapter discusses:
Premium Content
(For students of Muhammad Asif, FCA) Remedies for Breach of a Contract
(For Spring 2024)
How to Calculate Damages on Breach of Contract

LO 1: Remedies for Breach of Contract

Suit for specific performance Restitution Damages


or Injunction (i.e. restoration of (i.e. monetary compensation of loss)
(allowed only in some cases) benefits already received)

Ordinary Damages: Special Damages:


Definition: Definition:
which arise naturally in usual course [e.g. good/service Arise due to breach of contract, and parties knew it [e.g. loss on other
bought at higher price] contracts due to breach of this contract].

Rules: Rules:
Actual Damage allowed [e.g. market price– contract price] Allowed only if communicated at time of contract.
Allowed, whether communicated or not in contract. Actual Damage allowed.
Remote and indirect losses are not allowed [e.g. loss of future projects
not yet made]

Case Study Tips: How to Calculate Damages

Goods/Services not Delivered Money not Paid

Ordinary Damages Special Damages (if communicated) Reasonable Interest.


For Goods --> Market Price – Contract Price. Cancellation of Other contracts --> Loss of Profit + Compensation Paid.
For Services --> Reasonable Loss. Stop of Production --> Loss of Normal Profit
Cancellation of future contracts --> No Damages.

Common Rules of Damages:


1. Aggrieved party cannot claim a loss which could have been avoided reasonably.
2. Court allows reasonable damages or amount specified in the contract, whichever is lower.

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