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CPT Chapter breach of contract

CA CPT Exam  

With Bharat Gelani.Duration:2hrs 01min

Breach of ContractDuration (min:sec)
Breach 
Introduction02:01
What is Breach04:41
Actual Breach07:09
Anticipatory Breach19:35
Overview -Remedies for Breach of Contract02:58
Recession of Contract05:26
Damages & Types of Damages30:07
How damages are calculated08:05
Suit Quantum Merit14:31
Suit for Specific Performance05:46
Suit for Injunction04:08
Quiz16:14
Conclusion00:38
Total02:01:19

Notes

Breach
Actual Breach
Promisor refuses to perform on the due date
Claim compensation
Anticipatory Breach
Promisor refuses to perform before time for performance
Promisee may cancel or keep alive
Claim Damages

Remedies for breach of contract

1.Rescission of contract - discharge of promise
2.Claim Damage
3.Suit upon Quantum Meruit
4.Suit for specific performance
5.Suit for injunction

Rescission of contract

Cancellation of contract
Discharge of promise

Liability for Damages

Liquidating damages - Ascertained during contract
Ordinary damages - Ordinary course of Business
Special damages - Notice of special circumstances
Vindictive or exemplary damages - (punishment) Marriage or Cheque
Nominal damages - No real damages
Deterioration caused by delay

Damages Amount

1. Market Price - Contract Price
2. Duty to mitigate the loss - Cannot claim damages on account of ones own negligence
3. No compensation- Remote or indirect loss or damage

Remedies for breach of contract

1. Rescission of contract - discharge of promise
2. Claim Damages
3. Suit upon Quantum Meruit
4. Suit for specific performance
5. Suit for injunction

Suit upon Quantum Meruit
“as much as is earned” or “according to the quantity of work done”

Only by party who is not at fault

Cases where a claim or quatum meruit may arise:-
i) Work done, subsequently discovered void
ii) No intention of gratuitous
iii) Where contract is divisible

Few examples-

Specific Performance may be ordered by the court when :
(a) Damages are an adequate remedy
(b) Damages are not an adequate remedy
(c) Defaulting party is not ready to pay damages
(d) Contract is not voidable

In case of anticipatory breach, where the promisee elects to keep the contract alive, if during the time the contract remains open, some event happens discharging the promisor from his liability, the contract becomes :

(a) Voidable
(b) Illegal
(c) Contingent
(d) Void

The damages which are not natural and direct are known as :
(a) Penalty
(b) Liquidated damages
(c) Ordinary damages
(d) Remote damages

Generally, the following damages are not recoverable :
(a) Ordinary Damages
(b) Special Damages
(c) Remote Damages
(d) Nominal Damages


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