Damages / Remedies

Damages are intended to compensate the injured party for the loss that he has suffered as a result of the breach of contract. In order to establish an entitlement to substantial damages for breach of contract, the injured party must show that:

• actual loss has been caused by the breach
• the type of loss is recognised as giving an entitlement to compensation
• the loss is not too remote

There are several remedies for breach of contract, such as award of damages, specific performance, rescission, injunction. The mot common remedy for breach of contract is damages. There are three types of compensation available at common law as listed below :

• A sum of unliquidated damages based on the precise loss
• A liquidated sum fixed by the parties at the time the contract was formed
• A quantum mercuit for a party performed contract of service based on an amount representing the work already done