Chapter 10

What happens if the contract is breached?

Consequences for a breach of contract

There are a number of consequences for the breach of a contract. Primarily they are:

  • an order for damages or the payment of financial compensation by the party making the breach
  • an order for specific performance of the contract by the party in breach
  • an injunction
  • restitution.

Apart from an injunction, they all tend to arise after the contract has been terminated.

Damages

If a party breaches a contract and the suffering party can establish what they have lost arising from the breach, they make a claim to be compensated for that loss. It is necessary for loss to be proved. That loss may be of a number of different types. However, generally in breach of ...

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