breach of industrial construction contract by contractee

The payment amount is very high and as contractor is unable to meet out the liability of the market (its creditors) . What is the best remedy available to the contractor. Whether to file the suit for the breach of contract or to sue the  contractee for the recovery of dues or to file the winding up petition or to lockup the premises forcefully when the premises are not in the possession of the contractor. Can the contractee hire another contractor without terminating the services of the existing contractor.


@b saini

It depends upon what types of contract you have made:

Compensation In Case Of Breach of contract

   1. Compensation for loss or damage caused by breach of contract.

      For the breach of contract damages is the most appropriate remedy. When a contact has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew when they made the contract, to be likely to result from the breach of it.

      Such compensation is not to be given for any remote or indirect loss or damage sustained by reason of the breach.

   2. Compensation for breach of contact where penalty stipulated for.

      When a contract has been broken and a sum has been named in the contract as the amount to be paid in case of such breach, or if the contract contains any other stipulation by way of penalty, the party complaining of the breach is entitled, whether actual damage or loss is proved to have been caused thereby, to receive from the party who as broken the contract reasonable compensation not exceeding the amount so named or, the penalty stipulated for.

   3. Party rightfully rescinding contract entitled to compensation.

      A person who rightfully rescinds a contract is entitled to compensation for any damage, which he has sustained through non-fulfillment of the contract.


Here is a file which is helpful to you  and guide to you about .what steps you have to take.

Attached File : 54 54 breach of contract.pdf downloaded 144 times



Your are not logged in . Please login to post replies

Click here to Login / Register  


  Search Forum


  LAWyersclubindia Menu

IPC Course by Ex-Judge!!     |    x