UNIT 1

LAW OF CONTRACTS:

I. DEFINE CONTRACT AND INTRODUCE VARIOUS

CLASSES OF CONTRACT. WHAT ARE THE
ESSENTIALS OF A VALID CONTRACT?

II. DESCRIBE CONSIDERATION AND THE ESSENTIAL

FEATURES OF CONSIDERATION.

III. WHAT IS QUASI CONTRACT? EXPLAIN DIFFERENT

KINDS OF QUASI CONTRACT.

IV. WHAT IS PERFORMANCE OF CONTRACT? WHAT ARE

THE TYPES OF PERFORMANCE?

V. EXPLAIN THE RULES REGARDING MINOR’S

AGREEMENT.

VI. WHAT ARE THE REMEDIES FOR BREACH OF

CONTRACT?
 I. DEFINE CONTRACT AND INTRODUCE VARIOUS
CLASSES OF CONTRACT. WHAT ARE THE
ESSENTIALS OF A VALID CONTRACT?

A. DEFINE CONTRACT
Contract is an agreement between two or more people which is
enforceable in the court of law.
Elements of contract=Agreement + Enforceability

Law of contract: Section 2(H) defines contract as an enforceable

by law. An agreement involves two elements offer acceptance
whereas contract is an agreement + enforceability. All laws
related to contract are contained in Indian Contract act 1872.
All agreements are not contracts only those enforceable by
laws are contracts.

Example:
Hamza promises his son to give him a pocket money of 500 Rs
every month. In case, Hamza refuses to give his agreed amount
then the son would have no remedy.
They are not enforceable by law as they lack certain elements
that would make the agreement valid for a contract.

* Enforce means to compel observance of or obedience to.

*Enforceable means capable of being enforced
B. VARIOUS CLASSES OF CONTRACT
 1. CONTRACT ON THE BASIS OF VALIDITY

i. Valid: A valid contract is one which is enforceable by law.

The object of such a bond is to create an outstanding
obligation between the parties, one party shall be bound to
some performance, and the other shall have a legal right to
enforce.

ii. Void: An agreement which is not enforceable by law is void.

Such an agreement creates no legal right and obligations on
either side, e.g. an agreement with an alien enemy, an
agreement by way of wages, and an agreement in restraint
of trade.

iii. Voidable Contract: A voidable contract is “an agreement

which is enforceable by law at the option of one or more of
the parties thereto, but not at the option of the other or
others”. E.g. a contract induced by fraud or
misrepresentation or coercion, in other words, this type is,
where an aggrieved party, thereto may avoid or repudiate
while the other party cannot do so.

iv. Illegal Contract: These types of contract are considered

contrary to law and prohibited by law on pain of penalty
where a void contract does not. All illegal contracts are void,
but all void contracts are not illegal such as wagering
agreement is void but not illegal.

v. Unenforceable: The court, under certain circumstances,

will not enforce a contract which is otherwise valid because
of the technical difficulty created by the law of procedure
generally, such contracts are also called unenforceable
which are incapable of proof owing to the neglect of some
formalities required by special provisions of law. The most
important contracts in this class are of guarantee and for
the sale or other disposition of land of any interest in land.
 2. CONTRACT ON THE BASIS OF FORMATION

i. Express Contract: An express contract is the result of

the written or spoken words of the parties; these words
establish the contractual relationship. The agreement
and its terms are declared by the parties and are not left
to interference or to be understood.

ii. Implied Contract: An implied contract is one in which

the evidence of the agreement is not shown by words,
written or spoken, but by the acts and conduct of the
parties. Such an agreement arises, for example, when one
person, without being requested to do so, renders
services under circumstances indicating that he expects
to be paid for them, and the other person, knowing such
circumstances accepts the benefit of those services.

iii. Quasi Contract: Under certain circumstances the law

imposes an obligation to pay for a benefit received as
through a contract had actually been made. This will be
done in a limited number of situations in order to attain
an equitable or just result.

For Example: When a homeowner permits repairs to be made on

his home with the knowledge that they are being made by a
stranger who would expect to be paid for such repairs, there is
quasi-contractual duty to pay for the reasonable value of the
improvements. In order to distinguish this type of obligation from
a true contract which is based upon the agreement of the parties,
the obligation is called a Quasi.
3. CONTRACT ON THE BASIS OF PERFORMANCE
i. Executed Contract: An executed contract is one that has
been fully performed by all parties. It is obvious, of
course that a contract may at a given time be at one of
the various stages of execution. A contract may be
executed at once, as in the case of cash sale; or it may be
executed or performed in the future.

ii. Executory Contract: An executory contract is one upon

which no performance has taken place. For example, if a
utility company agrees to furnish electricity to another
party for a specified period of time at a stipulated price,
the contract is executory. If the entire price is paid in
advance, the commitment is still deemed executory,
although, strictly speaking, it is executed on one side an
executory on the other.

iii. A unilateral contract is a contract created by an offer

that can only be accepted by performance. To form
the contract, the party making the offer (called the
“offeror”) makes a promise in exchange for the act of
performance by the other party

iv. A bilateral contract is an agreement between two parties

in which each side agrees to fulfill his or her side of the
bargain
 C. ESSENTIALS OF A VALID CONTRACT

A Valid Contract is an agreement, which is binding and

enforceable. In valid contract all the parties are legally bound to
perform the contract. A contract that is not a valid contract will
have many problems for the parties involved. For this reason, we
must be fully aware of the various elements of a valid contract.

1) OFFERS AND ACCEPTANCE

For an agreement there must be a lawful offer by one and lawful
acceptance of that offer from the other party. The term lawful
means that the offer and acceptance must satisfy the
requirements of Contract Act. The offer must be made with the
intention of creating legal relations otherwise, there will be no
agreement.

Example:
A say to B that he will sell his cycle to him for Rs.2000. This is an
offer. If B accepts this offer, there is an acceptance.

2) LEGAL RELATIONSHIP
The parties to an agreement must create legal relationship. It
arises when parties know that if one for the failure of a contract.
Agreements of a social or domestic nature do not create legal
relations and as such cannot give rise to a contract. It is
presumed in commercial agreements that parties intend to create
legal relations.

Example:
A father promises to pay his son Rs.500 every month as pocket
money. Later, he refuses to pay. The son cannot recover as it is a
social agreement and does not create legal relations.
 3) LAWFUL CONSIDERATION
The third essential of a valid contract is the presence of
consideration. Consideration is “something in return.” It may be
some benefit to the party. Consideration has been defined as the
price paid by one party for the promise of the other. An
agreement is enforceable only when both the parties get
something and give something. The something given or obtained
is the price of the promise and is called consideration.

Example:
1. A agrees to sell his house to B for Rs.10 Lac is the
consideration for A’s promise to sell the house, and A’s promise
to sell the house is the consideration for B’s promise to pay Rs.10
Lac. These are lawful considerations.

2. A promise to obtain for B employment in the public service,

and B promise to pay 10,000 rupees to A. the agreement is void,
as the consideration for it is unlawful.

4) CAPACITY OF PARTIES:
An agreement is enforceable only if it is entered into by parties
who possess contractual capacity. It means that the parities to
an agreement must be competent to contract. According to
Section 11, in order to be competent to contract the parties must
be of the age of majority and of sound mind and must not be
disqualified from contracting by any law to which they are
subject. A contract by a person of unsound mind is void ab-initio
(from the beginning). If one of the parties to the agreement suffers
from minority, madness, drunkenness etc., the agreement is not
enforceable at law, except in some cases.

Example:
1. M, a person of unsound mind, enters into an agreement with S
to sell his house for Rs.2 lac. It is not a valid contract because M
is not competent to contract.
2. A, aged 20 promises to sell his car to B for Rs.3 Lac. It is a
valid contract because A is competent to contract.
 5) FREE CONSENT:
It is another essential of a valid contract. Consent means that the
parties must have agreed upon the same thing in the same sense.
For a valid contract it is necessary that the consent of parties to
the contact must be free.

Example:
1. A compels B to enter into a contract on the point of pistol. It is
not a valid contract as the consent of B is not free.

6) LAWFUL OBJECTS:
It is also necessary that agreement should be made for a lawful
object. The object for which the agreement has been entered into
must not be fraudulent, illegal, immoral, or opposed to public
policy or must not imply injury to the person or property of
another. Every agreement of which the object or consideration is
unlawful is illegal and the therefore void.

Example:
A promise to pay B Rs.5 thousand if B beats C. The agreement is
illegal as its object is unlawful.

7) WRITING AND REGISTRATION:

According to Contract Act, a contract may be oral or in writing.
Although in practice, it is always in the interest of the parties
that the contract should be made in writing so that it may be
convenient to prove in the court. However, a verbal contract if
proved in the court will not be considered invalid merely on the
ground that it not in writing. It is essential for the validity of a
contact that it must be in writing signed and attested by witness
and registered if so required by the law.

Example:
1. A Verbally promises to sell his book to y for Rs.200 it is a valid
contract because the law does not require it to be in writing.
2. A verbally promises to sell his house to B it is not a valid
contract because the law requires that the contract of immovable
property must be in writing.

8) CERTAINTY:
According to Section 29 of the Contract Act, “Agreements the
meaning of which are not certain or capable of being made
certain are void.” In order to give rise to a valid contract the terms
of the agreement, must not be vague or uncertain. For a valid
contract, the terms and conditions of an agreement must be clear
and certain.

Example:
1. A promised to sell 20 books to B. It is not clear which books A
has promised to sell. The agreement is void because the terms
are not clear.

2. A agrees to sell B a hundred tons of oil. It is not clear what the

kind of oil is. The agreement is void because of it uncertainty.

3. O agreed to purchase a van from S on hire-purchase terms.

The price was to be paid over two years. Held there was no
contract as the terms were not certain about rate of interest and
mode of payment.

9) POSSIBILITY OF PERFORMANCE:
The valid contract must be capable of performance section 56
lays down that. “An agreement to do an act impossible in itself is
void.” If the act is legally or physically impossible to perform, the
agreement cannot be enforced at law.

Example:
1. A agrees with B to discover treasure by magic, the agreement
is not enforceable.

2. A agrees with B to put life into B’s dead brother. The

agreement is void as it is impossible of performance.
 10) NOT EXPRESSLY DECLARED VOID:
An agreement must not be one of those, which have been
expressly declared to be void by the Act. Section 24-30 explains
certain types of agreement, which have been expressly declared
to be void. An agreement in restraint of trade and an agreement
by way of wager have been expressly declared void.

Example:
A promise to close his business against the promise of B to pay
him Rs.2 lac is a void agreement because it is restraint of trade.
 II. DESCRIBE CONSIDERATION AND THE ESSENTIAL
FEATURES OF CONSIDERATION.

A. IMPORTANCE OF CONSIDERATION
Consideration is the foundation of ever contract. The law insists
on the existence of consideration if a promise is to be enforced as
creating legal obligations. A promise without consideration is null
and void.
Types of Consideration:
1. Executory
2. Executed
3. Past consideration

1. Executed consideration is an act in return for a promise. If

,for example, A offers a reward for the return of lost property,
his promise becomes binding when B performs the act of
returning A’s property to him. A is not bound to pay anything
to anyone until the prescribed act is done.

2. Executory consideration is a promise given for a promise. If,

for example, customer orders goods which shopkeeper
undertakes to obtain from the manufacturer, the shopkeeper
promises to supply the goods and the customer promises to
accept and pay for them. Neither has yet done anything but
each has given a promise to obtain the promise of the other. It
would be breach of contract if either withdrew without the
consent of the other.

3. Past consideration which as general rule is not sufficient to

make the promise binding. In such a case the promisor may by
his promise recognize a moral obligation (which is not
consideration), but he is not obtaining anything in exchange
for his promise (as he already has it before the promise is
made).
 B. ESSENTIALS OF A VALID CONSIDERATION:

1) At the desire of the promisor.

2) Promisee or any other person.

3) Consideration may be past, present or future.

4) Consideration must be real.

5) Consideration must move at the desire of the promisor:

- In order to constitute legal consideration, the act or
abstinence forming the consideration for the promise must
be done at the desire or request of the promisor. Thus acts
done or services rendered voluntarily, or at the desire of
third party, will not amount to valid consideration so as to
support a contract.

6) Consideration may move from the promisee or any other

person:
- The second essential of valid consideration, as contained in
the definition of consideration in Section 2(d), is that
consideration need not move from the promisee alone but
may proceed from a third person.
Thus, as long as there is a consideration for a promise, it is
immaterial who has furnished it. It may move from the
promisee or from any other person. This means that even a
stranger to the consideration can sue on a contract,
provided he is a party to the contract. This is sometimes
called as ‘Doctrine of Constructive Consideration’.
7) Consideration may be past, present or future:
- The words, “has done or abstained from doing; or does or
abstains from doing; or promises to do or to abstain from
doing,” used in the definition of consideration clearly
indicate that the consideration may consist of either
something done or not done in the past, or done or not done
in the present or promised to be done or not done in the
future. To put it briefly, consideration may consist of a past,
present or a future act or abstinence. Consideration may
consist of an act or abstinence:

8) Past consideration:
- When something is done or suffered before the date of the
agreement, at the desire of the promisor, it is called ‘past
consideration.’ It must be noted that past consideration is
good consideration only if it is given by the promisee, ‘at the
desire of the promisor.

9) Present consideration:
- Consideration which moves simultaneously with the
promise is called ‘present consideration’ or ‘executed
consideration’

10) Future consideration:

- When the consideration on both sides is to move at a future
date, it is called ‘future consideration’ or ‘executory
consideration’. It consists of an exchange of promises and
each promise is a consideration for the other.

11) Consideration must be ‘something of value’:

- The fourth and last essential of valid consideration is that it
must be ‘something’ to which the law attaches a value. The
consideration need not be adequate to the promise for the
validity of an agreement.
 III. WHAT IS QUASI CONTRACT? EXPLAIN DIFFERENT
KINDS OF QUASI CONTRACT.
A Quasi Contract is a contract that is created by a court order,
not by an agreement made by the parties to the contract.
For example, quasi contracts are created by the court when no
official agreement exists between the parties, in disputes over
payments for goods or services.
The goal in the court’s creation of these contracts is to
prevent unjust enrichment to any party. To explore this concept,
consider the following quasi contract definition.

KINDS OF QUASI CONTRACTS -

1. CLAIM FOR NECESSARIES SUPPLIED TO PERSON

INCAPABLE OF CONTRACTING, OR ON HIS ACCOUNT
(SECTION 68)

“If a person, incapable of entering into a contract, or anyone

whom he is legally bound to support, is supplied by another
person with necessaries suited to his condition in life, the
person who has furnished such supplies is entitled to be
reimbursed from the property of such incapable person.

Illustrations –
- A supplies B, a lunatic, with necessaries suitable to his
condition in life. A is entitled to be reimbursed from B’s
property.

- A supplies the wife and children of B, a lunatic, with

necessaries suitable to their condition in life. A is entitled to
be reimbursed from B’s property.
 2. REIMBURSEMENT OF PERSON PAYING MONEY DUE BY
ANOTHER, IN PAYMENT OF WHICH HE IS
INTERESTED (SECTION 69)
A person who is interested in the payment of money which
another is bound by law to pay, and who therefore pays it, is
entitled to be reimbursed by the other.

Illustration -
B holds land in Bengal, on a lease granted by A, the zamindar.
The revenue payable by A to the Government being in arrear, his
land is advertised for sale by the Government. Under the revenue
law, the consequence of such sale will be the annulment of B’s
lease. B to prevent the sale and the consequent annulment of his
own lease pays the Government the sum due from A. A is bound
to make good to B the amount so paid.

3. OBLIGATION OF PERSON ENJOYING BENEFIT OF NON-

GRATUITOUS ACT (SECTION 70).
Where a person lawfully does anything for another person, or
delivers anything to him, not intending to do so gratuitously, and
such another person enjoys the benefit thereof, the letter is
bound to make compensation to the former in respect of, or to
restore, the thing so done or delivered.

4. RESPONSIBILITY OF FINDER OF GOODS (SECTION 71)

A person who finds goods belonging to another, and takes them
into his custody, is subject to the same responsibility as a bailee.
 5. LIABILITY OF PERSON TO WHOM MONEY IS PAID, OR
THING DELIVERED, BY MISTAKE OR UNDER COERCION
(SECTION 72) –
A person to whom money has been paid, or anything delivered,
by mistake or under coercion, must repay or return it.

Illustrations -

(a) A and B jointly owe 100 rupees to C, A alone pays the amount
to C, and B, not knowing this fact, pays 100 rupees over again to
C. C is bound to repay the amount to B.

(b) A railway company refuses to deliver up certain goods to the

consignee except upon the payment of an illegal charge for
carriage. The consignee pays the sum charged in order to obtain
the goods. He is entitled to recover so much of the charge as was
illegal and excessive.

Let's take the most basic example first. Let's say you pay for a
pizza to be delivered. If that pizza is delivered to another house,
and someone else enjoys your three-topping special, a quasi-
contract could be initiated. Now, the pizzeria could be court
ordered to reimburse you for the amount you paid for that pie.
 IV. WHAT IS PERFORMANCE OF CONTRACT? WHAT ARE
THE TYPES OF PERFORMANCE?
Performance of Contract ‘means that both, the promisor, and
the promisee have fulfilled their respective obligations, which the
contract placed upon them. For instance, A visits a stationery
shop to buy a calculator. The shopkeeper delivers the calculator
and A pays the price. The contract is said to have
been discharged by mutual performance.

TYPES OF PERFORMANCE

1. ACTUAL PERFORMANCE
When a promisor to a contract has fulfilled his obligation in
accordance with the terms of the contract, the promise is said to
have been actually performed. Actual performance gives a
discharge to the contract and the liability of the promisor ceases
to exist. For example, A agrees to deliver10 bags of cement at B’s
factory and B promises to pay the price on delivery. A delivers the
cement on the due date and B makes the payment. This is actual
performance.

Actual performance can further be subdivided into substantial

performance, and partial Performance

2. SUBSTANTIAL PERFORMANCE
This is where the work agreed upon is almost finished. The court
then orders that the money must be paid, but deducts the
amount needed to correct minor existing defect. Substantial
performance is applicable only if the contract is not an entire
contract and is severable. The rationale behind creating the
doctrine of substantial performance is to avoid the possibility of
one party evading his liabilities by claiming that the contract has
not been completely performed. However, what is deemed to be
substantial performance is a question of fact to be decided in
both the case. It will largely depend on what remains undone and
its value in comparison to the contract as a whole.
 3. PARTIAL PERFORMANCE

This is where one of the parties has performed the contract, but
not completely, and the other side has shown willingness to
accept the part performed. Partial performance may occur where
there is shortfall on delivery of goods or where a service is not
fully carried out.

There is a thin line of difference between substantial and partial

performance. The two following points would help in
distinguishing the two types of performance.

 Partial performance must be accepted by the other

party. In other words, the party who is at the receiving end
of the partial performance has a genuine choice whether to
accept or reject. Substantial performance, on the other
hand, is legally enforceable against the other party.

 Payment is made on a different basis from that for

substantial performance. It is made on quantum merit,
which literally means as much as is deserved. So, for
example, if half of the work has been completed, half of the
negotiated money would be payable. In case of substantial
performance, the party that has performed can recover the
amount appropriate to what has been done under the
contract, provided that the contract is not an entire
contract. The price is thus, often payable in such
circumstances, and the sum deducted represents the cost of
repairing defective workmanship.
 4. ATTEMPTED PERFORMANCE

 When the performance has become due, it is sometimes

sufficient if the promisor offers to perform his obligation under
the contract. This offer is known as attempted performance or
more commonly as tender.

 Thus, tender is an offer of performance, which of course,

complies with the terms of the contract. If goods are tendered
by the seller but refused by the buyer, the seller is discharged
from further liability, given that the goods are in accordance
with the contract as to quantity and quality, and he may sue
the buyer for breach of contract if he so desires.

 The rationale being that when a person offers to perform, he is

ready, willing and capable to perform. Accordingly, a tender of
performance may operate as a substitute for actual
performance, and can effect a complete discharge.

 In this regard, Section 38 of Indian Contract Act says:

‘Where a promisor has made an offer of performance to the
promisee, and the offer has not been accepted, the promisor is
not responsible for non-performance, nor does he thereby lose
his rights under the contract.

 For example, A contracts to deliver to B, 100 tons of basmati

rice at his warehouse, on 6 December 2015. A takes the goods
to B‘s place on the due date during business hours, but B,
without assigning any good reason, refuses to take the
delivery. Here, A has performed what he was required to
perform under the contract. It is a case of attempted
performance and A is not responsible for non-performance
of B, nor does he thereby lose his rights under the contract.’
 V. EXPLAIN THE RULES REGARDING MINOR’S
AGREEMENT.
A Person under the age of eighteen years is called a Minor. Since
they have an immature mind, they are very often exploited. There
are laws to protect the minors from unnecessary hardships when
they enter into an agreement.
1. Void abinitio
A contract by a minor is void ab initio i.e., from the very
beginning and not merely voidable

2. No Estoppel Against Minor

When someone makes another person to believe that a particular

fact or thing is true, then later on he cannot be allowed to deny
the truth of that thing (Sec. 115 of the Indian Evidence Act,
1872). However, there is no such estoppel against the minor.

3. Beneficial Contracts
A minor can be a promisee or a beneficiary of a contract. Due to
his minority, he can’t bind himself by a contract, but he can
derive benefit under the contract.

4. No Ratification of Agreement

An agreement made by a minor cannot be confirmed by him on

attaining majority. This is because, minor’s agreement is void ab
initio, and, therefore cannot be made valid by ratification.

5. No Liability in Contract or in Tort Arising out of

Contract
The term tort means any wrong for which a civil suit can be
brought. If a minor enters into an agreement by misrepresenting
his age, he cannot be sued either in contract or in tort for deceit
(i.e., fraud). This is because, if the injured party were allowed to
sue, it would be an indirect method of enforcing the void
agreement.
 6. Doctrine of Restitution
It implies that when a person obtains property or goods by false
representation, he can be compelled to restore it to the person
from whom he has received it. This doctrine applies to minors
also. But, the minor can be compelled to restore the property or
goods so long as the same is traceable in his possession.

7. Liability for Necessaries

If a person supplies necessaries to a person who is incapable of
entering into a contract or to anyone whom such incapable
person is legally bound to support, he can claim reimbursement
from the property of such incapable person. A minor is also liable
for the value of necessaries supplied to his wife.

8. Minor as an Agent
A minor can be appointed as an agent because an agent is merely
a connecting like between the principal and the third party. But
he will not be personally liable for his acts as an agent.

9. Minor as an Insolvent
All agreements with a minor are absolutely void. Therefore, a
minor cannot be declared as insolvent.

10. Minor can Execute Negotiable Instrument

A minor is competent to draw, negotiate or endorse the negotiable
instruments. However, it may be noted that the minor will not
incur any personal liability under such instruments. But the
minor can enforce the negotiable instruments executed in favor of
him

11. The Liability of Minor’s Parents or Guardians

The minor’s contracts do not impose any liability on his
parents/guardians even if the contracts are for necessaries.
However, if the minor is acting as an agent for the parents/
guardian, then the parents/guardians shall be liable under the
contract.
 12. Minor as a Partner
A minor cannot be a partner in the partnership firm. However, he
can be admitted to the benefits of the firm with the consent of all
other partners. He has no right to take part in the management
of the firm. But his liabilities are limited to the extent of his
interest in the partnership.
 VI. WHAT ARE THE REMEDIES FOR BREACH OF
CONTRACT?
REMEDIES FOR BREACH OF CONTRACT

When a promise or agreement is broken by any of the parties we

call it a breach of contract. So when either of the parties does not
keep their end of the agreement or does not fulfil their obligation
as per the terms of the contract, it is a breach of contract. There
are a few remedies for breach of contract available to the wronged
party.

1. Recession of Contract
When one of the parties to a contract does not fulfil his obligations,
then the other party can rescind the contract and refuse the
performance of his obligations.

As per section 65 of the Indian Contract Act, the party that

rescinds the contract must restore any benefits he got under the
said agreement. And section 75 states that the party that rescinds
the contract is entitled to receive damages and/or compensation
for such a recession.

2. Sue for Damages

Section 73 clearly states that the party who has suffered, since the
other party has broken promises, can claim compensation for loss
or damages caused to them in the normal course of business.

Such damages will not be payable if the loss is abnormal in

nature, i.e. not in the ordinary course of business. There are two
types of damages according to the Act,
 Liquidated Damages: Sometimes the parties to a contract will
agree to the amount payable in case of a breach. This is
known as liquidated damages.

 Unliquidated Damages: Here the amount payable due to the

breach of contract is assessed by the courts or any
appropriate authorities.

3. Sue for Specific Performance

This means the party in breach will actually have to carry out his
duties according to the contract. In certain cases, the courts may
insist that the party carry out the agreement.

So if any of the parties fails to perform the contract, the court may
order them to do so. This is a decree of specific performance and is
granted instead of damages.

For example, A decided to buy a parcel of land from B. B then

refuses to sell. The courts can order B to perform his duties under
the contract and sell the land to A.

4. Injunction
An injunction is basically like a decree for specific performance but
for a negative contract. An injunction is a court order restraining a
person from doing a particular act.

So a court may grant an injunction to stop a party of a contract

from doing something he promised not to do. In a prohibitory
injunction, the court stops the commission of an act and in a
mandatory injunction, it will stop the continuance of an act that is
unlawful.
 5. Quantum Meruit
Quantum meruit literally translates to “as much is earned”. At
times when one party of the contract is prevented from finishing
his performance of the contract by the other party, he can claim
quantum meruit.

So he must be paid a reasonable remuneration for the part of the

contract he has already performed. This could be the remuneration
of the services he has provided or the value of the work he has
already done.