Critique on “Damages” as a Remedy for Breach of Contract Under Indian, American, English and Chinese Law.

Topics: Contract, Breach of contract, Tort Pages: 26 (8885 words) Published: March 18, 2011
Critique on “Damages” as a remedy for breach of contract under Indian, American, English and Chinese law.

Project: Law of Contracts

|Submitted to: |Submitted by: | |Prof (Dr.) Amar Singh | | |Principal Faculty, |Dheerak Kumar Aseri - B.Sc. LL.B (Hons.) | |Law of Contracts, | | |National Law University, |III - Semester | |Jodhpur. | |


Purposes Of Damages6
Types Of Damages6
General Measure Of Damages11
Damages Under The Uniform Commercial Code11
Measurement Of Damages For The Seller's Breach Of Contract:11 Measurement Of Seller's Damages When Buyer Breaches:12
Damages Under Chinese Law12
Comparison Of Concept Of Damages Under U.S. And Chinese Law16 Differing Philosophies Of Search Term Begin Contract Search Term End Performance17 Damages Cannot Be Independent Of Economic Position Of Parties20 The Efficient Breach Theory21

Problems With The Efficient Breach Theory23


Research Problem: Whether “damages” is a common remedy for breach of contract and the standard of measurement of damages is similar in these countries and whether the damages provided for the breach of contract can be independent of the economic position of the parties and it may act as a tool for ruling class (affluent class) to simply avoid the obligations due under any contract.

Research Questions: 1. Whether Damages as a general remedy for breach of contract is applicable in India, USA, England and China and whether the concept and standard of damages in the above mentioned countries is similar? 2. Whether providing “Damages” for breach of contract be independent of the economic and social position of the parties? 3. Whether the ruling (affluent) class uses this remedy to further exploit the labour class by breaching the contract at their whims and fancies?

Hypothesis: 1. Yes, damages is the most common remedy for breach of contract in India, USA, England and China and the standard, concept and types of damages are similar in the above named countries. 2. No, the concept of providing damages for breach of contract cannot be independent of the economic and social position of the parties. 3. Yes, the ruling class (capitalist) use it to avoid their liabilities under contract law as they are very affluent and can easily pay damages.

Research Methodology: The data to be collected is mostly theoretical in nature and hence the Research Cards method will be used. Most of the data will be collected from secondary sources.

Style of Reference to Sources: The “MLA Style Sheet” has been used for the purposes of style of referencing the sources of the data collected.


The word "breach," as applied to contracts, is defined as a failure without legal excuse to perform any promise that forms a whole or a part of a contract, including the refusal of a party to recognize the existence of the contract or a party's act that is inconsistent with its existence.[i] Also as per the case of Rhino Linings USA, Inc. v Rocky Mountain Rhino Lining, Inc.[ii], “If a party to a contract fails to perform a promise mutually bargained for and agreed upon by the parties, then the remedy is an action for breach”. Now the remedies for breach of contract...
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