To be claimed in case of breach of contract REMEDIES To be claimed in case of breach of contract

Definition Any of the methods available at law for the enforcement, protection, or recovery of rights or obtaining redress for their infringements. It may include damages, an injunction, a decree of specific performance or a declaration. (Oxford Concise Dictionary of Law)

Damages Quantum meruit Specific performance Injunction Recourses available: Damages Quantum meruit Specific performance Injunction

Damages Principal remedy for breach of contract as compensation to the innocent party Photo Production Ltd, v Securicor Transport Ltd

Categories of damages Liquidated – amount fixed by parties in advance in the contract Unliquidated – amount to be fixed by the court General – the natural and probable consequence of a wrong OR damages given for loss incapable of precise estimation eg. pain, suffering, loss or reputation Special – loss not presumed, can be quantified and must be proven eg. Out of pocket expenses or loss of earnings

Law relating to damages originate from the CML rule established in Hadley v Baxendale Reflected in Section 74-76 Contract Act 1950 Tham Cheow Toh v Assoc. Metal Smelters Ltd. (special damages)

Section 75 Stipulating penalty for breach of contract Effects To determine the maximum limit of compensation The plaintiff can only recover a reasonable sum Wearne Bros Ltd. V Jackson

Section 74 explanation Mitigating loss The innocent party must take reasonable steps to mitigate loss Failure to do so, the party cannot later recover any loss flowing from his neglect Kabatasan Timber Extraction Co. v Chong Fah Sing

Other categories of damages Substantial damages Given when actual damage is caused & intended to put P in a position he would have enjoyed if the contract is performed Nominal damages Small token given in case of breach but no damages is suffered Exemplary damages Awarded in exceptional cases to punish D’s wrongdoing

Quantum Meriut A party should be awarded as much as he earns Can be contractual or quasi-contractual The party will be reasonably rewarded in the event of dispute In case of void contracts, claims will be made on the basis of quantum meriut Craven-Ellis v Canons Ltd. Section 66 illustration c

Situations where QM is awarded: When the contract is silent about the payment for the service but payment is necessary Upton RDC v Powell Where from the conduct of the parties, a new contract is established and the party have provided service under the new contract Parkinson & Co. v Commissioner of Works Where plaintiff chose to end the contract because of defendant’s breach or where plaintiff is prevented from performing the contractual obligation - Plance v Colburn

Specific performance A decree of the court directing that the contract shall be performed specifically ie. according to the original terms agreed by both parties

Will be awarded at the discretion of the court in the following circumstances: Where monetary compensation is inadequate Where the granting of it would not give plaintiff an unfair advantage over the defd Cause undue hardship to the defendant

Injuctions Equitable order of the court granted at its discretion It is a ‘Preventive Relief’ as stated under the SRA 1950 Refer to S 50-55 of SRA 1950

Temporary/interlocutory/ Injunctions Temporary/interlocutory/ interim Perpetual / permanent Injunctions that continue until a specified time or until the further order of the court Issued at any period of a suit regulated by CPL Granted for preserving the status quo while awaiting the resolution of a legal action Injunction that be granted by the decree made at the hearing and upon the merits of the suit where the D is perpetually enjoined from the assertion of a right / from the commission of an act which would be contrary to the rights of the P.

CONTINUATION… TEMPORARY PERMANENT Before deciding the injunction: Whether there are serious action to be tried If it is serious , the Ct then will consider whether P would be adequately compensated by damages Ct will look at balance of convenience Case: Mohamed Zainuddin bin Puteh v Yap Chee Seng Granted by the Ct to prevent the breach of an obligation existing in favor of the applicant; express or by implication Granted by Ct when the D invades or threatens to invade the P’s right to or enjoyment of property Case: Neoh Siew Eng & Anor v Asia Pacific Hotels Management Pte Ltd

CONT… Mandatory injunctions – to compel the performance of certain acts which the court is capable of enforcing with a view to prevent the breach complained of Case: Neoh Siew Eng & Anor v Too Chee Kwang Restraining order / prohibitory injunction- stopping something from being done Case: Broome (S’gor) Rubber Plantations v R.H. Whitely