BUSINESS LAW

Business Law

Business Law

Introduction

Business law governs the activities of the corporations at large. It incorporates certain legally accepted practices, which have to be followed by every company that is registered under law. This paper examines the consequences of business law in case a contract is violated. It discusses the damages available to the injured party in case of non performance of obligations under the contract. Lastly it discusses the implications of self employment and its obligations on the company that is hiring employees under the subject of self employment. It also determines the rights of self employed persons.

Examine, with reference to relevant case law, the extent to which it is true to say that in the event of a breach of contract the injured party can recover compensation for all of the consequences, both financial and non-financial, that result from the breach.

Compensations to Injured party in case of Breach of Contract

A contract binds two or more parties to fulfil certain obligations under the contract for mutual benefits and gains. However in case of nay one of the parties fails to fulfil the obligations of a contract, breach results. There are many provisions for the injured party (party that suffers loss due to non-performance by the other party) in the law to claim for relief and compensation in case of a breach of contract. When the breach of contract is not backed by justifiable and substantial reasons, the law recommends certain legal proceedings to give “relief” to the injured party (Carter, 1984, 287-295). The law of contract does not withhold the party who was responsible for the breach, but it surely 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 several remedies to the injured party that includes rectification, cancellation, injunction, damages, and special performance. Here we will be discussing about damages (Ewan, 2005, 135).

When a party suffers loss or damage in consequence of a breach of contract, by non-performance or defective 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. [See: Albank, FSB v. Foland, 676 N.Y.S.2d 461, 177 Misc.2d 569 (N.Y. City Ct., 1998)]. This concept supports the doctrine of restitution which states that the defendant has no right to enrich himself discriminatorily and the plaintiff does not have to suffer loss in case of breach of contract ...