Question

What are the remedies open to the party aggrieved in a suit on contracts?

• A. Specific performance and injunction
• B. Specific performance and damages
• C. Specific performance only
• D. All the above

Hint:

Remember the key remedies for breach of contract: - Damages (under Contract Act) - The general rule. - Specific Performance (under Specific Relief Act) - The exception, when damages are not adequate. - Injunction (under Specific Relief Act) - To prevent a breach. Crucially, under S.21 of the Specific Relief Act, damages can be awarded in addition to or in substitution of specific performance.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
When a contract is breached, the aggrieved party has several legal remedies available. These remedies can be broadly classified into those available under the Indian Contract Act, 1872 (like damages) and those available under the Specific Relief Act, 1963 (like specific performance and injunction).
Step 2: Detailed Explanation:
The primary remedies for breach of contract are:
1. Damages (Compensation): This is the most common remedy, governed by Sections 73 and 74 of the Indian Contract Act. The goal is to compensate the aggrieved party for the loss suffered due to the breach.
2. Specific Performance: This is an equitable remedy, governed by the Specific Relief Act, 1963. The court directs the breaching party to perform the promise they had made in the contract. This is typically granted when damages are not an adequate remedy (e.g., contracts for the sale of a unique property).
3. Injunction: This is another remedy under the Specific Relief Act. It is a court order restraining a person from doing a particular act (prohibitory injunction) or compelling them to do a particular act (mandatory injunction). It is often used to prevent a breach of a negative stipulation in a contract.
The question asks for the remedies open to the party. An aggrieved party can sue for specific performance of the contract. Under Section 21 of the Specific Relief Act, the plaintiff may also claim compensation for the breach, either \textit{in addition to}, or \textit{in substitution of}, such performance.
This means a court can grant both specific performance and damages (e.g., specific performance of the sale of a house, plus damages for the delay). Or it can refuse specific performance but still award damages.
An injunction (A) is also a remedy, but "specific performance and damages" (B) represents a more direct and commonly paired set of primary remedies for enforcing a positive obligation under a contract. Given the options, (B) is a very strong and common combination of remedies. Option (D) could also be argued if injunction is seen as a distinct remedy, but the pairing of specific performance and damages under Section 21 is a specific statutory provision making (B) a highly accurate answer. In many competitive exams, where there might be overlapping options, the most specifically provided legal combination is preferred.