An Introduction to the Breach of Contract

A breach of contract is also in a contract. Breach of Contract is the existence of agreement where there is a failure to keep the promises or agreement or failure to live up to his or her responsibilities of a contract. The whole contract or part of the contract may be breached. There are three important remedies available in a contract which is damages, specific performance and injunction.

2.1.1 Damages

The remedy that is available in a contract which is damages is due to the losses or costs which incurred because of another party wrongful act. Damages are the payment in one form or a remedy which is provided by the common law to provide financial compensation or loss or debt where there has been a breach of contract. The main purpose there is damages in a breach of contract is because there is a need to protect the promisee s expectation interest and in the promisor s performance. There are also contractual damages in a breach of contract. It is a loss suffered when there is a breach of contract. Contractual damages are not mean to be a punishment for the party who has fails to perform the agreements which are in the contract. The defendant s ability to pay in ensuring the measure of damages does not consider by the court. When there are cases which make the party unable to perform the agreements made in a contract, the plaintiff who is the person who brings suit in the court which is opposed to the defendant would have expectation interest which is measured by difference – money damages. The difference between the contract price and the cost of construction by another builder would be the general measure of damages

2.1.2 Specific Performance

Specific performance is a court order which requires the defendant to perform his act which is promised in the contract. It is a remedy commonly used in the form of a judicial process or order requiring the person or the persons to whom it is directed to do a particular act or to refrain from doing a particular act concerning information or real property. Specific performance is usually used to complete a previously established transaction and it is also the most effective remedy in protecting the expectation interest of the innocent party in the contract. The court will practice its act according to its own judgement not to decree specific performance where damages provide an adequate remedy. If the terms of the contract are uncertain, specific performance will be refused. The court also has the discretion to refuse specific performance where the granting of specific performance would cause undue hardship to the defendant. The court of equity developed the remedy of specific performance since damages often cannot adequately compensate someone for the inability to own a specific piece of real property, land being regarded as unique. The remedy which is specific performance is often guaranteed through the remedy of a right of possession which gives the plaintiff the right to take possession of the property in dispute. The orders of specific performance are granted when damages are not a suitable remedy. The availability of specific performance remedy will depend on whether it is appropriate in the circumstances of the case. For example, when company A wants to build another restaurant in another location has made an agreement with the franchisor but was later been told that he will not grant the franchise because the franchisor would want to build and operate the restaurant at another location. Company A could take action towards the franchisor for breach of contract. This would eventually force the franchisor to keep up with the agreement to the terms of a contract

2.1.3 Injunction

An injunction is an order of a court which requires a person, corporation, or government entity to stop doing something and prevent from doing something in the future. There are three types of injunction which could be use which is first, interlocutory injunction. Interlocutory injunction is used to maintain the status quo of the subject matter a pending suit by a party. For example, Rathi has made a sale and purchase agreement of a car with Nirosha. However, Nirosha has decided not to sell the car to Rathi but to a third party. Rathi can eventually file an interlocutory injunction in order to maintain the status quo of the car while pending the judgement of the court. Another type of injunction would be mandatory injunction. Mandatory injunction is a court order which requires something to be done. This means that the court would compel a person, company, or governmental unit take affirmative to do something. For example, if Restaurant T has a website about the restaurant but Restaurant K copies whatever is offer at Restaurant T to their website is in violation of copyright notices. The court would issue an injunction to prevent the violation from happening.

2.2 Conclusion of Breach of Contract

Breach of Contract which is cause by being unclear of the terms in the contract, leaving undecided can result in an unsatisfied customer, lost opportunity to boost their business, and get a lawsuit for breach of a contract. It is important to have a detailed and clear contract being made so that the breach of contract could be prevented