REMEDIES FOR THE BREACH OF THE CONTRACT, by Tajiri, A. Esq

REMEDIES FOR THE BREACH OF THE CONTRACT
Remedy means a course of action available to the aggrieved party.
• Breach of contract is the failure to perform what a party is under a

duty to perform.
• When this happens, the non-breaching party can choose one or more
remedies.
The following are remedies for the breach of contract.
1- Rescission
This means the cancellation of the contract. The aggrieved party to a

contract may opt to cancel the contract so as to discharge himself from
contractual duties.
2- Suit for damages.
The party who suffer loss may file a suit to claim for the loss suffered due to
breach of contract.
This may be specific, general,punitive, liquidated, unliquidated or nominal

damages.
• SPECIAL Damages given for losses that can be quantified, such as

out-of-pocket expenses or earnings lost during the period between the
injury and the hearing of the action.
• PUNITIVE Damages given to punish the defendant rather than (or

as well as) to compensate the claimant for harm done.
• LIQUIDATED Damages fixed in advance by the parties to a

contract as the amount to be paid in the event of a breach. They are
recoverable provided that the sum fixed was a fair pre-estimate of the
likely consequences of a breach.
1|Page
• UNLIQUIDATED DAMAGES the amount of which is fixed by the
court.
• NORMINAL DAMAGES, when no actual damages result from a

breach of contract and only a technical injury is involved; a small
amount of money awarded to a plaintiff in a lawsuit to show he/she
was right, but suffered no substantial harm.
• GENERAL DAMAGES is the one which is awarded due to a loss

that is incapable of precise estimation. It is hard put actual value of
loss. It is normally awarded by the court. The court has discretion to
award it.
3- SPECIFIC PERFORMANCE i.e. a court order to a person to fulfil

his obligations under a contract. In certain cases damages are not
adequate remedy. The court may in such a case direct the other party to
perform the obligation.
The court may order specific performance when:
• compensation in money for non-performance OF AN ACT is not

adequate.
• No standard of ascertaining the actual damage cause by non-

performance
Circumstances where a Specific performance will not be

granted are:
• Damages are adequate remedy.
• Contract is made by trustee in breach of their trust.
• Contract is of personal nature.
• Contract made by company in excess of its power under MEMAT.
• Performance would cause severe hardship to the defendant.
• Contract requiring constant supervision Eg building contract.
2|Page
• contract made for no consideration
4- Injunction.
where a party is in breach of a negative term of a contract ( doing

something which promise not to do)the court may issue an order restrain
him from doing what he promise not to do, or stays of an order given out
by the court of Law.
5-Quantum meriut
Means as much as a party deserves
MITIGATION OF LOSS
• When a breach of contract occurs, the innocent injured party is held

to a duty to mitigate, or reduce, the loss/ damages that he or she
suffers.
Example: persons whose jobs have been wrongfully terminated have a

duty to seek other jobs. The damages they receive are their salaries, less the
income they received (or would have received) in similar jobs (Parker v.
Twentieth Century-Fox Film Corp.)
CLASSIFICATION OF CONTRACTS
• SPECIALITY CONTRACT( BY DEED/ UNDERSEAL)
It’s a contract which is written, signed, sealed. It derives its binding

force from its form. No negotiations (take it or leave it).
• SIMPLE CONTRACT
It’s a contract which is made in written or oral but not under seal.
They must be supported by consideration.
TYPES OF CONTRACTS
1. Unilatral&Bilateral
3|Page
• Unilateral/ one side contract
Is a contract where only one party to the contract makes a promise.
when one party (the offeror) promises to perform an act if another party
(the offeree) performs an act.
Eg: Contract of insurance.
• Bilateral Contract
Parties exchange mutual promises. Both are legally obligated to perform an

act in exchange for the other party's act. i.e both promisor and promisee .
“Reciprocal" contracts.
Oral contract- this is the contract which is made through a word of

mouth. There is no need for it to be recorded into writings.
Written contract- this is the contract which is made through a written

form. They have to be reduced into a document. Eg: contract of conveyance.
Formal contract- is a contract where the parties have signed under seal.
Informal contract- is the one which is not under seal.
SOME TERMS AS RELATED TO CONTRACT
• Condition
• Warrant
• Exemption clause
• Void agreement
• Void contract
• Voidable contract
• Executed contract
4|Page
• Executory contract
• Illegal agreement
• Unenforceable contract
***THANK YOU***
Prepared by:
Tajiri. A, Esq
Faculty of Economics and management sciences
Mobile: +255 714 432 111
Email: [email protected]
DISCLAIMER:
The information contains in this Document is prepared for educational purpose.

They may be used by the students, faculties, independent learners or any other
person with interest. They should not constitute a legal advice or be considered as
final and conclusive.
5|Page

REMEDIES FOR THE BREACH OF THE CONTRACT, by Tajiri, A. Esq

Uploaded by

Copyright:

Available Formats

REMEDIES FOR THE BREACH OF THE CONTRACT, by Tajiri, A. Esq

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

REMEDIES FOR THE BREACH OF THE CONTRACT, by Tajiri, A. Esq

Uploaded by

Copyright:

Available Formats

REMEDIES FOR THE BREACH OF THE CONTRACT

Remedy means a course of action available to the aggrieved party.

• Breach of contract is the failure to perform what a party is under a

The following are remedies for the breach of contract.

This means the cancellation of the contract. The aggrieved party to a

2- Suit for damages.

This may be specific, general,punitive, liquidated, unliquidated or nominal

• SPECIAL Damages given for losses that can be quantified, such as

• PUNITIVE Damages given to punish the defendant rather than (or

• LIQUIDATED Damages fixed in advance by the parties to a

• NORMINAL DAMAGES, when no actual damages result from a

• GENERAL DAMAGES is the one which is awarded due to a loss

3- SPECIFIC PERFORMANCE i.e. a court order to a person to fulfil

The court may order specific performance when:

• compensation in money for non-performance OF AN ACT is not

• No standard of ascertaining the actual damage cause by non-

Circumstances where a Specific performance will not be

• Damages are adequate remedy.

• Contract is made by trustee in breach of their trust.

• Contract is of personal nature.

• Contract made by company in excess of its power under MEMAT.

• Performance would cause severe hardship to the defendant.

• Contract requiring constant supervision Eg building contract.

where a party is in breach of a negative term of a contract ( doing

Means as much as a party deserves

• When a breach of contract occurs, the innocent injured party is held

Example: persons whose jobs have been wrongfully terminated have a

• SPECIALITY CONTRACT( BY DEED/ UNDERSEAL)

It’s a contract which is written, signed, sealed. It derives its binding

Is a contract where only one party to the contract makes a promise.

Eg: Contract of insurance.

Parties exchange mutual promises. Both are legally obligated to perform an

Oral contract- this is the contract which is made through a word of

Written contract- this is the contract which is made through a written

Informal contract- is the one which is not under seal.

SOME TERMS AS RELATED TO CONTRACT

Faculty of Economics and management sciences

Mobile: +255 714 432 111

The information contains in this Document is prepared for educational purpose.

You might also like