A contract is an agreement between two persons which is enforceable by law. So the agreement will have many terms which both parties should agree with. If there is any violation of terms, there is breach of contract. So in case of such breach what is the remedy available to the aggrieved person. Sections 73 to 75 of the Indian Contract Act deals with this aspect.
As per the law there are generally four types of remedies. They are Recission, Specific Performance of Contract, Damages or Compensation and Quantum Meruit.
When one party commits breach of a contract, the aggrieved can withdraw from the contract. He thus gets free from all types of obligations and liabilities of that contract. This is called recission of contract or rescinding the contract.
2. Specific Relief
When one party violates the terms the aggrieved can enforce it specifically. The aggrieved party can move the court to direct the party who breaches the contract to perform the same. If money is an adequate remedy this type is not always entertained. If the damage cannot be compensated with money alone, the court may direct the party to perform the contract. This is called specific performance of contract.
3. Damages or Compensation
The aggrieved party can also seek the person who violated the contract to compensate by way of money. This relief will ensure that the aggrieved person has not lost anything with the breach of contract and he is adequately compensated as if the contract is performed. There are different types of damages namely ordinary damages, special damages, exemplary damages, nominal damages, liquidated damages.
4. Quantum Meruit
This is the compensation or money for the work done in a repudiated or ill-performed or part-performed contract. This will come in case where the contract becomes difficult even to perform partly. In such cases the party who has done some work under this contract must get as much as merited. He must get the amount for the work done.