Canadian Contract Law/Remedies for Breach

Remedies for BreachEdit

If a contract is broken, the injured party might be expected to demand any of the following:

  • to have what they gave returned to them ("restitution")
  • compensation for their loss ("damages")
  • forcing the other party to live up to the contract ("specific performance")


In the common law tradition, damages is the usual remedy that a court awards for a broken contract. Restitution and specific performance are only available in specific cicrumstances.

DamagesEdit

Specific PerformanceEdit

RescissionEdit

Rescission (to "set aside" a contract) refers to the cancellation of the contract between the parties. This is done to bring the parties as far as possible to the position they were before they entered into a contract. This an equitable remedy and is discretionary. The court may decline to rescind a contract if one party has affirmed the contract by his action (see Long v Lloyd) or a third party has acquired some rights or there has been substantial performance in implementing the contract.

Last modified on 12 October 2007, at 00:20