Consequence of breach Of Contract

Question 1

1. What are the two categories of remedies for breach of contract?
2. What are common law remedies?
   Answer: Common law remedies include rescission (the right to cancel the contract), restitution (the restoration of benefits received), and damages (monetary compensation for the loss suffered).
3. What are the rules for allowing special damages?
   Answer:
   - Special damages can only be awarded if they were communicated at the time of entering into the contract.
   - The damages are awarded based on the actual loss suffered.
4. What is meant by “remote and indirect loss”?
   Answer: Remote and indirect losses, such as loss of future projects, are not allowed to be claimed as damages for a breach of contract. Only losses that are considered reasonably foreseeable and directly related to the breach are eligible for compensation.

Answer 1

Answer: Equitable Remedies and Common Law of Remedies

Question 2

2. What are equitable remedies?
   Answer: Equitable remedies are orders issued by a court to either perform specific actions as agreed in the contract (specific performance) or to refrain from doing something (injunction) as agreed in the contract. These remedies are granted when monetary compensation is not sufficient.

Question 3

4. What are ordinary damages?

Answer 3

Answer: Ordinary damages are damages to compensate for losses that naturally arise in the usual course of events from a breach of contract. For example, paying a higher price to purchase a replacement for the agreed goods or services from the market.

Question 4

5. What are the rules for allowing ordinary damages?

Answer 4

Answer:
- Ordinary damages can be allowed even if not specifically mentioned in the contract.
- The damages are based on the actual loss suffered, such as the difference between the market price on the date of breach and the contract price.

Question 5

6. What are special damages?
   Answer: Special damages are awarded to compensate for losses that are likely to result from a breach of contract, and the parties were aware of these losses at the time of making the contract. This could include losses on another contract due to the breach of the current contract.

Question 6

8. What is meant by “remote and indirect loss”?

Answer 6

Answer: Remote and indirect losses, such as loss of future projects, are not allowed to be claimed as damages for a breach of contract. Only losses that are considered reasonably foreseeable and directly related to the breach are eligible for compensation.