Remedies for Breach of Contract

• If one party breaches a contract, the innocent party may seek a legal remedy.
• These remedies aim to either:
  1. enforce the contract or
  2. compensate for any loss caused by the breach.

There are three main remedies available:

1. Damages ( Compensation)
2. Specific Performance
3. Rescission (Cancel the Contract)

1. Damages (Compensation)

• This is the most common remedy.
• The injured party is awarded financial compensation to cover the loss caused by the breach. The goal is to place them in the position they would have been in if the contract had been properly carried out.
• Example: A catering company agrees to supply food for a wedding. On the day of the event, they fail to turn up, and the couple has to hire another caterer at short notice for a higher price. The couple can sue for the extra cost incurred as a result of the original company's breach.

2. Specific Performance

• The court may order the party in breach to carry out their exact obligations under the contract.
• This remedy is used when compensation would not be enough—for example, when a unique item or property is involved.
• Example: A property developer agrees in writing to sell a specific plot of land to a buyer. After signing the contract and receiving a deposit, the developer tries to back out and sell the land to someone else at a higher price. Because land is considered unique, the buyer can take the case to court and seek specific performance—a court order forcing the developer to complete the sale as agreed.

3. Rescission (Cancel the Contract)

• Rescission means the contract is set aside and both parties are returned to their original positions—as if the contract had never existed.
• Example: A person buys a car from a dealer who falsely claims it has never been in an accident. After discovering the car had major structural repairs, the buyer may seek to rescind the contract, return the car, and get their money back.