Rules on Measure of Damages in Breach of Contract

Cost of Suit :The aggrieved party is entitled, in addition to the damages, to get the costs of getting the decree for damages tram the defaulter party. The cost of suit for damages is in the discretion of the court.

Summary of the Rules Regarding the Measure of Damages

The principles governing the measure of damages discussed above may be summarized as under:

1. The damages are awarded by way of compensation for the loss suffered by the aggrieved party and not for the purpose of punishing the guilty party for the breach.

2. The injured party is to be placed in the same position, so far as money can do, as if the contract had been performed.

3. The aggrieved party can recover by way of compensation only the actual loss suffered by him, arising naturally in the usual course of things.

4. Special or remote damages, i.e., damages which are not the natural and probable consequence of the breach are usually not allowed until they are in the knowledge of both the patties at the time of entering into the contract.

5. The fact that damages are difficult to assess does not prevent the injured party from recovering them.

6. When no real loss arises from the breach of contract, only nominal damages are awarded.

7. If the parties fix up in advance the sum payable as damages in case of breach of ,contract, the court will allow only, reasonable compensation so as to cover’ the actual loss sustained, not exceeding the amount so named in the contract.

8. Exemplary damages cannot be awarded for breach of contract except in case of breach of contract of marriage or wrongful refusal by the bank to honour the customer’s cheque.

9. It is the duty of the injured party to minimize the damage suffered.

10. The injured party is entitled to get the costs of getting the decree for damages from the defaulter party.
Rules on Measure of Damages in Breach of Contract Rules on Measure of Damages in Breach of Contract Reviewed by Hosne on 9:53 AM Rating: 5
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