A Contract is an agreement between two or more partiesadmin / January 23, 2019
A Contract is an agreement between two or more parties; it is enforceable whether or not in a written form, although a written contract protects all parties involved. A strong contract must be in writing to be legally binding and enforceable. Examples of contracts are an employment contract: where an employee is given an offer by the employer and if the employee is in agreement and sings the offer this will now be regarded as a contract of employment which both parties have to abide by, consultancy contract where an individual or an organisation enter into an agreement to do consultancy work or construction contract: where a construction company get into an agreement with an individual to construct either a house or an office.
However, when a party fails to perform an obligation arising under the contract then the party is said to be in breach of contract. Depending on the conditions of the contract, a breach may occur when 1. When a party fails to perform on time when time for performance was given, When a party does not perform in accordance with the terms of the agreement in other words this is called positive malperformance, 3. When the party does not perform at all – this is repudiation. In any case the innocent party has to state in his pleading the specific remedy that they seek though there may be no limitation in seeking different remedies in the alternative.
When one party breaches a contract, the innocent party to the agreement is entitled to relief which is called a remedy under the law. The most common remedy to be awarded will be an amount of money compensation in the form of unliquidated damages. Other common remedies for a breach of contract are specific performance, or cancellation and restitution
Damages are the monetary compensation that is awarded by a court to the innocent party in case of breach. The payment of damages is the most common remedy for a breach of contract. It is important for the innocent party to minimise loss because of the breach. Is is said the purpose of damages is to put the victim of breach so far as possible as the law allows, into the same position he would have been if the contract had not been broken but had performed in the manner and at the time intended by the parties (C Turner 2010). There are several kinds of damages which may be allowed by law and these are: