First Principles of Business Law

Remedies for breach of contract

1. Selecting an available remedy

1.1. The need for legal remedies for breach of contract

 

 

 

Most of the time, contracting parties discharge their obligations voluntarily, by doing what they promised. But sometimes there is a failure to perform. This does not automatically make litigation necessary.  Dispute can often be resolved by negotiation and compromise. Contracting parties normally try to avoid suing each other because bringing a legal action is expensive, slow, uncertain and creates such hostility that the parties are unlikely to do business with each other again. But if alternative dispute resolution processes fail, it may be necessary to bring a legal action to enforce a contract. In those cases, it is important to know what remedies the law provides. 

The available remedies include: a claim for damages to compensate for loss suffered as a result of the breach; the right to reject the faulty performance and put a stop to further performance; an order of specific performance; or an injunction to stop a continuing breach.

This module will help you learn what remedies are available in particular circumstances, and what difficulties might be encountered when claiming particular relief. You need to know how to:

  • Select the most appropriate remedy available in the circumstances.
  • Explain the extent to which a particular remedy provides relief.
  • Know what has to be proved to obtain particular kinds of relief.
  • Take account of limitations on the availability of particular remedies.

 

 

 

 

 

 

 

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