Consequences for Breach of Contract

Question 1

Suit for specific performance

Answer 1

Order of court to do promise

Question 2

Suit for Injunction

Answer 2

Order of court prohibiting from doing on act

Question 3

Ordinary damages

Answer 3

To compensate losses arises naturally in usual course of things

Question 4

Rules of ordinary damages

Answer 4

1- Ordinary damages are allowed even not stated in contract
2- Actual loss is allowed as damages

Question 5

Special Damages

Answer 5

To compensate losses likely to result from breach of contract and parties knew

Question 6

Rules of special damages

Answer 6

1- Allowed only if communicated
2- Allowed on the basis of actual loss
(Remote and indirect loss)

Question 7

Definition of Penalty

Answer 7

Parties fix an amount paid on breach of contract

Question 8

Goods / services not delivered

Answer 8

• Avail other options to minimize loss

1- Ordinary Damages
- For goods = Contract price - Market price (If market price is not given , contract price is equal to market price)
- For services
(Reasonable loss due to breach of contract)

2- Special damages (if communicated at time of contract)
- Cancellation of other contract = Loss of profit + Compensation paid
- Stop of production (loss of normal profit)

Question 9

Money not delivered

Answer 9

Reasonable interest