BREACH OF CONTRACT

Breach of Contract

Breach of Contract



Introduction

According to the case scenario, Chris telephoned Bradley and informs him that he is selling his bike; the message was left on the phone machine. Bradley's wife received the message and communicates Chris that her husband is out of town for some race, and she informed him about the offer. Later, Chris posted a letter that he sold his bike to Jason for £3500 (same offer which he gave to Bradley). With this post, he also wrote that in case of any issue contact him before Saturday. Jason was ready to but the bike but, he need to ask that either Chris also give disc wheels in the same price? The letter was delayed and not delivered to Chris until Monday 8:30. On the other hand, Bradley came back before Sunday also asked Chris that he is ready to but the bike for the same price, and he posted an email which was not checked by Chris until Monday 11:00.

Breach of Contract

The law of contract does not withhold the party who was responsible for the breach, but it confidently offers compensation to the ones who were injured as a result of inability to perform the contract by the other party. It is the Section 73 and 74 of the Contract Act that deals with the grievances of the injured party, called “damages”. The Act offers specific remedies to the injured party that includes rectification, cancellation, injunction, damages, and memorable performance. Here, we discuss damage(Treitel 2003,p. 140).

When a party suffers loss or damage in consequence of a breach of contract it could affect non-performance or inadequate performance. He is entitled to recover compensation from the party breaking the contract. However, the question arises as to what extent the injured party can be compensated for. We will examine different types of damages that are available as a remedy of breach of contract and their adequacy in compensating for the breach. According to the law, the injured party should be compensated with an amount that would have been equivalent to the performance of the contract if it had occurred by default.

This concept supports the doctrine of restitution which states that the defendant has no right to enrich himself discriminatorily. Plaintiff does not have to suffer loss in case of breach of contract assumingly (Atiyah 2003,p. 245). There are some important clauses that need mention in this regard. In case of non-performance or defective performance of contract, the injured party firstly has to approach the court of law on the basis of a right to sue the defaulters. In case of not filing a sue, there will be no entitlement to the damages from the defendants. The court will assist the injured party in recovering the damages. Similarly, the party who commits the breach will not be naturally liable to compensate the other party who is suffering. It is only after the decision of the court that the defendant is entitled to offer financial compensations to the ...