Business contracts these days specify the rights, liabilities and activities of the parties in detail. Still in the event of breach of the contractual obligations, irreparable intangible damages like loss of reputation a
CS Professional · Drafting, Appearances and Pleadings · PYQS · June 2016
Business contracts these days specify the rights, liabilities and activities of the parties in detail. Still in the event of breach of the contractual obligations, irreparable intangible damages like loss of reputation and market do occur. Advise the remedies and redressal action, an aggrieved party to the contract can take under the civil law in such an event if the contract could still be saved. Cite legal provisions, if any.
Answer & Explanation:
The aggrieved party to the contract may seek the following remedies and redressal actions :- (a) Injunction (b) Suit for specific performance Injunction An injection is a specific order of the Court forbidding the commission of a wrong threatened or the discontinuance of a wrongful course of action already begun. Injunction may be either temporary or permanent. Permanent injunction restrains a party for ever doing the specified act and the same can be granted only on merits of the case at the conclusion of the trial after hearing both parties to the suit. It is governed by Section 38 to 42 of Specific relief Act, 1963. A temporary injunction restrains a party from doing the specified act and can be granted until the final disposal of the suit. It is regulated by the provisions of Order 39 of the Code of Civil Procedure and it may be granted at any stage of the suit. The power to grant temporary injunction is at the discretion of the Court. This discretion however should be exercised reasonably, judiciously and on some legal principles. Suit for Specific performance Specific performance is an order of the court which requires a party to perform a specific act, usually what is stated in the contract. It is an equitable remedy commonly used in the form of injunctive relief concerning confidential information or real property. Specific performance is granted when damages are not an adequate remedy and in some specific cases such as sale of land. Such orders are discretionary as with all equitable remedies, so the availability of this remedy will depend on whether it is appropriate in the circumstances of the case. The Supreme Court in Babulal vs. Hazari Lal and others has held that no special form of decree on a suit for specific performance is supplied by CPC. Chapter 11 of Special relief Act, 1963 deals with the various circumstances under which a contract may be enforced specifically and when it cannot be allowed. When a contract is to be specifically enforced, it means simply that when the parties do not agree to perform the contract mutually, the intervention of court is required.
Topics: Contract Law