The indian contract act, 1872 is the law relating to contracts in indiait came into force on september 1, 1872 and is extended to the whole of india except to the state of jammu and kashmir. According to section 74 of the act, when a contract has been broken, if a sum is 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 or not actual damage or loss is proved to have been caused thereby. The indian contract act, 1872 ca manish dafria consequences of breach remedies for breach of contract he should perform his obligation under it. Under section 73 of the indian contract act, when a contract has been broken, a 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.
The indian contract act -1872 defines contract as an agreement enforceable by law the essentials of a (valid) contract are: (a) intention to create legal relations. The law of damages under indian contract act 1872 04 i breach of contract 05 law of damages in india, uk and singapore: an overview 23 under indemnity. The damage is to be calculated on the basis of the principle which has been given under section 73 and 74 of the indian contract act, 1872 section 73 of the contracts act states that when any breach of contract happens, the party who suffers any loss can recover the amount from the person who breached the contract.
Damages under indian contract act section 73 of the contract act is lays down the provision relating to damages it provides that the party, who breaches a contract, is liable to compensate the injured party for any loss or damage caused, due to the breach of contract. According to section 64 of the indian contract act 1872, when a person at whose option a contract is voidable rescinds it, the other party thereto need to perform any promise therein contained in which he is the promisor. Speaker: ca padma jain to get dvds or pendrives call or whatsapp 9313157570 remedies for breach of contract breach of contract ca cpt law indian contract act.
Importance of indian contract act, 1872 law of contract is the most important branch of mercantile law it determines the circumstances under which promises made by the contracting parties shall be legally binding on them. For the pay in the breach of contract, there will also be two ways, which are- compensation for loss (damage) due to breach of contract the most suitable remedy for the breach of contract can be damages. Section73 of indian contract act, 1872: when a contract 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. Discharge by breach of contract means when a party having a duty to perform a contract fails to do so or does an act which leads to the non-performance of the contract or refuses to perform the contract there is said to be a breach of contract.
74 compensation for breach of contract where penalty stipulated for:- 34 [when a contract has been broken, if a sum is 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. As per the indian contract act,1872, a contract is an agreement enforceable by law the agreements are not enforceable by law are not contracts an agreement means 'a promise or a set of promises' forming consideration for each other.
The indian contract act, 1872 (act) governs the law of contracts in india and is predominantly based on english common law the act defines the term contract as an agreement enforceable by law 2 in other words, it is a legally enforceable and binding agreement, which is voluntarily entered into. Editor's note: the sale of goods act, 1930 was enacted as the law relating to sale of goods under the indian contract act was considered to be inadequate here a focus has been drawn to the remedies available to either party for breach of the contract of sale by the other.