Remedies for Breach of Contract
This chapter embraces all the remedies applicable if there has been a breach of contract. Discussion covers the judicial remedies of debt, damages, specific performance, injunctions, and declarations. It should be noted that English law will not enforce an agreement for the payment of a sum which will act as a penalty, that is, the amount agreed to be paid (or other stipulated detriment) is not an acceptable forecast of the actual loss likely to arise from the relevant default and instead the stipulated payment or detriment is disproportionate to the innocent party’s interest in compensation or other legitimate interests. Nor will the courts award punitive damages for breach of contract. The process of forfeiting deposits is also noted. Other topics covered are set-off and limitation of actions.