Performance, Discharge and Breach of Contract: Remedies and Damages Questions

Question 1

What is quantum meruit?

Accepted Answer

Quantum meruit means “as much as earned” and allows reasonable compensation for work done in certain cases.

Question 2

Define performance of contract.

Accepted Answer

Performance of contract means fulfillment of contractual obligations by the parties according to the terms of the contract.

Question 3

What is tender (attempted performance)?

Accepted Answer

Tender is an offer by a party to perform his/her promise, but the other party refuses to accept it.

Question 4

Define discharge of contract.

Accepted Answer

Discharge of contract means termination of contractual obligations, releasing parties from further performance.

Question 5

What is breach of contract?

Accepted Answer

Breach of contract is failure of a party to perform the promise according to the contract.

Question 6

State one remedy for breach of contract.

Accepted Answer

Damages.

Question 7

Differentiate between actual performance and attempted performance (any three points).

Accepted Answer

Actual vs attempted performance:

| Point | Actual performance | Attempted performance (tender) |
|---|---|---|
| Meaning | promise is actually fulfilled | offer to perform is made but refused |
| Result | obligation ends normally | promisor may be discharged from further performance in certain cases |
| Example | delivery and payment done | buyer refuses delivery though seller offers |

Question 8

State any three modes of discharge of contract.

Accepted Answer

Modes of discharge (any three):

1) By performance.
2) By mutual agreement (novation/rescission/alteration).
3) By impossibility of performance.

(Also: by operation of law, by breach.)

Question 9

Differentiate between actual breach and anticipatory breach (any three points).

Accepted Answer

Actual vs anticipatory breach:

| Point | Actual breach | Anticipatory breach |
|---|---|---|
| Time | on due date or during performance | before due date |
| How | failure/refusal to perform when due | clear refusal by words or conduct |
| Remedy | sue after breach | may sue immediately or wait until due date |

Question 10

Write any three remedies for breach of contract.

Accepted Answer

Remedies (any three):

1) Damages.
2) Rescission of contract.
3) Specific performance.

(Also: injunction, quantum meruit.)

Question 11

Explain damages and mention any three types.

Accepted Answer

Damages are monetary compensation for loss due to breach. Types (any three):

1) Ordinary/compensatory damages.
2) Special damages (special loss known to parties).
3) Nominal damages.

(Also: liquidated damages, exemplary in limited contexts.)

Question 12

Explain mitigation of loss (any three points).

Accepted Answer

Mitigation of loss means:

1) The aggrieved party must take reasonable steps to reduce loss.
2) Damages are not awarded for avoidable loss.
3) The burden is to act reasonably, not to take extreme steps.

Question 13

Explain discharge of contract and write different modes of discharge with examples. Use a table.

Accepted Answer

Discharge of contract means termination of contractual obligations so that parties are freed from further performance. A contract can be discharged in several ways.

| Mode of discharge | Meaning | Example |
|---|---|---|
| By performance | parties perform their promises | goods delivered and price paid |
| By mutual agreement | novation, rescission, alteration | parties replace old contract with new one |
| By impossibility | performance becomes impossible | destruction of subject matter |
| By operation of law | discharge due to law | insolvency, lapse of time |
| By breach | failure/refusal to perform | non-delivery on due date |

Thus, discharge ends the contract and determines whether any remedy arises due to breach.

Question 14

Explain breach of contract and remedies available to the aggrieved party. Use a table and write in exam style.

Accepted Answer

Breach of contract occurs when a party fails to perform his promise according to the contract. Breach may be actual (on due date) or anticipatory (before due date by refusal).

Remedies for breach are meant to protect the aggrieved party and compensate loss.

| Remedy | Meaning | Example/when used |
|---|---|---|
| Damages | monetary compensation | most common remedy for loss |
| Rescission | cancel the contract | serious breach, contract terminated |
| Specific performance | court orders actual performance | unique goods/property; damages inadequate |
| Injunction | court restrains doing an act | breach of negative promise |
| Quantum meruit | reasonable payment for work done | work done before contract discharged |

Therefore, the law provides multiple remedies so that the aggrieved party gets compensation and justice depending on the nature of breach.

Question 15

Write a detailed note on damages: meaning, principles and types. Include mitigation of loss and a table.

Accepted Answer

Damages are monetary compensation awarded to the aggrieved party for loss caused by breach of contract. The main aim is to place the injured party, as far as money can, in the position he would have been in if the contract had been performed.

Key principles:
1) Damages are given for loss that naturally arises in the usual course of things.
2) Special damages may be claimed for special loss only if it was within the knowledge of parties.
3) **Mitigation of loss:** the aggrieved party must take reasonable steps to reduce loss; no damages for avoidable loss.

| Type of damages | Meaning |
|---|---|
| Ordinary/compensatory | normal loss arising from breach |
| Special | special loss known to parties |
| Nominal | small amount when right is violated without major loss |
| Liquidated | amount pre-fixed in contract (subject to law and reasonableness) |

Thus, damages are the most common remedy, but the amount depends on the nature of loss and the duty to mitigate.

Point	Actual performance	Attempted performance (tender)
Meaning	promise is actually fulfilled	offer to perform is made but refused
Result	obligation ends normally	promisor may be discharged from further performance in certain cases
Example	delivery and payment done	buyer refuses delivery though seller offers

Performance, Discharge and Breach of Contract: Remedies and Damages

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