Breach of Contract 2

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LAW OF CONTRACT

Chapter No. 10
Lecture No. (2)

Breach of Contract
REMEDIES FOR BREACH OF CONTRACT
(3) Suit upon Quantum Meruit

The term quantum meruit means payment in proportion to the work


done or reasonable value of work done. Where a person has done some
work under a contract and the other party cancels the contract or an event
happens, which makes the performance of the contract impossible; such
party can claim remuneration for the work already done. The right to
claim for quantum meruit arises when the original contract is discharged.
If the original contract exists, the party may sue for quantum meruit. The
aggrieved party may sue in the following cases:

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REMEDIES FOR BREACH OF CONTRACT
Suit upon Quantum Meruit

(a) When an agreement becomes subsequently void.

(b) When there is a promise to render services but no agreement about


remuneration.

(c) Where something is done without any intention to do so


gratuitously.
(d) When the contract is divisible.

(e) When the completion of the contract is prevented by the other party.
(f ) When an indivisible work is badly performed.

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REMEDIES FOR BREACH OF CONTRACT
Suit upon Quantum Meruit (Example)
(a) B contracts to build a 3 storey house for A. When one story is
complete, A stops B’s work. B can get compensation for work done.

(b) C was employed MD in a company. After 3 months it was found


that the directors were not authorized to appoint him. C sued for
remuneration. Held, C could recover for the work done.

(Craven Ellis vs. Canon Ltd.)

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REMEDIES FOR BREACH OF CONTRACT
(4) Suit for Specific Performance

Specific performance means the actual carrying out of the contract by

a party. In some cases where the damages are not an adequate remedy the

court may direct the guilty party to fulfil the contract. The aggrieved party

can sue for specific performance in the following cases:

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REMEDIES FOR BREACH OF CONTRACT
Suit for Specific Performance
(a) Where compensation in money is not an adequate
remedy.
(b) Where it is difficult to calculate the actual damages.
(c) Where compensation in money cannot be obtained.
Specific performance is not granted in the followings cases:
(a) Where damages are an adequate remedy.

(b) Where the court cannot supervise the execution of the


contract, e.g, a construction contract.
(d) Where one of the parties is a minor.

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REMEDIES FOR BREACH OF CONTRACT
Suit for Specific Performance (Example)

(a) A agrees to sell his plot to C, who agrees to buy to erect a mill. A

commits breach. On the suit of C, A is directed by the court to perform

the contract.

(b) A agrees to sell B his painting, but commits breach, B cannot sue

for damages. A shall be ordered to make specific performance to B.

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REMEDIES FOR BREACH OF CONTRACT
(5) Suit for Injunction

Injunction is an order of a court restraining a person from doing

something which he promised not to do. It is a preventive relief. If is a

discretionary remedy of the court. It is appropriate in cases of

anticipatory breach of contract.

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REMEDIES FOR BREACH OF CONTRACT
Suit for Injunction (Example)

(a) W agreed to sing at Lu’s theatre and for no one else.

Afterwards W contracted Z to sing at another theatre and refused to sing

for Lu. Held, W could be restrained by injunction from singing for Z.

(Lumly vs. Wagner)

(b) G agreed to take the supply of electricity only from M company.

G was, restrained by an injunction from buying electricity from any

other company. (Metropolitan Electric Supply Co. vs Ginder).

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