Contract Law

Contract Broken? Two Smart Paths Forward βš–οΈ


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πŸ›οΈ The Contract Crisis Every Business Faces

🌟 Picture this: You're halfway through a major project when suddenly the other party breaks the contract. What now? Should you demand payment for the work you've already done, or go after them for the profits you'll lose? This isn't just a legal question - it's a crucial business decision!

πŸ’‘ What You'll Discover:

  • πŸ” Quantum Meruit - The "pay me for what I've done" approach that gets you back to square one
  • βš–οΈ Damages under Section 73 - The forward-looking strategy that aims for what you would have earned
  • 🎯 Why the famous Hadley vs. Baxendale case still shapes how courts award compensation today
  • πŸ’° The difference between general damages (obvious losses) and special damages (hidden consequences)

πŸš€ Real Cases Discussed:

  • πŸ’Ž Puran Lal vs. State of Uttar Pradesh - How the Supreme Court defined the restitution principle
  • ⭐ Victoria Laundry case - The boiler delivery that taught us when you can (and can't) claim for lost profits

🎯 Strategic Decision Framework:

  • 🀝 How your business relationships influence which path to choose
  • πŸ“Š Why evidence availability matters more than you think
  • ⏰ When looking backward (work done) beats looking forward (profits lost)
  • πŸ“‹ How liquidated damages clauses under Section 74 can limit your options

πŸŽ™οΈ By the end, you'll have a clear framework for making this critical choice - whether you're a business owner protecting your interests or simply curious about how contract law really works in practice!

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Contract LawBy Sharad Bansal