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Sohan Lal promises to supply 50 bags of cement to Magna Real Estate for their ongoing commercial project on 15th March 2018. Sohan Lal does not supply cement on 15th March 2018 but supplies it on 25th March 2018, due to which the project could not be completed on time.i. Identify and explain the mode of discharge of this contract.ii. What is the remedy available to Magna Real Estate.iii. Explain the rationale behind this remedy. |
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Answer» (1) Discharge by Breach of Contract- Breach means failure to perform the obligation by a party. When a party to a contract does not perform his part of the obligation due to which the contract becomes broken, the person who suffers because of the breach is entitled to receive compensation or damages from the party who has breached the contract ( Section 73) (2) A common remedy for breach of contract is awarding damages to the affected party. Monetary compensation given to the affected party for the loss or injury caused to him due to the breach is called damages. (3) The Doctrine of Restitution. The basis of this Doctrine is awarding damages for the pecuniary loss incurred by the party to the contract. |
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