Question 1

What is the main remedy for breach of contract in India?

Accepted Answer

There is no single remedy for every breach. Depending on the contract and facts, a party may seek damages, termination, specific or substituted performance, an injunction, restitution or a negotiated solution.

Question 2

Are liquidated damages automatically recoverable in full?

Accepted Answer

No. Section 74 refers to reasonable compensation not exceeding the amount named. The contract, nature of the stipulation and evidence remain important.

Question 3

Can a business terminate immediately for breach?

Accepted Answer

Only when the contract and applicable law support that response. Review materiality, notice, cure rights, waiver and any urgent exception before terminating.

Question 4

What evidence is needed for a damages claim?

Accepted Answer

Keep the contract, proof of breach, chronology, invoices, replacement costs, internal records, correspondence and documents showing causation and reasonable mitigation.

Question 5

Can a court require the other party to perform?

Accepted Answer

Specific performance may be available under the Specific Relief Act subject to statutory conditions, the nature of the obligation and the claimant's conduct.

Question 6

Does negotiation extend the limitation period?

Accepted Answer

Negotiation alone should not be assumed to extend limitation. The effect of acknowledgements, part-payments or agreements should be assessed separately.

Question 7

Should a company send a breach notice before filing a case?

Accepted Answer

The contract and chosen procedure may require notice, cure, escalation or mediation. Even where not mandatory, a carefully drafted notice can clarify the claim and requested remedy.

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