Breach Of Contract

Breach of contract is a legal course of action and a type of civil wrong in which a binding agreement or bargain for exchange is not honoured by one or more of the parties to the contract by non-performance. It can also be said to be a failure without legal excuse to perform any promise that forms all of the contract. When a breach of contract occurs or is alleged, one or both of the parties may wish to have the contract enforced on its terms, or may try to recover for any financial harm caused by the alleged breach. There are remedies available for one who brings an action for breach of contract.
These remedies are; Award of damages, specific performance, rescission and restitution.
In Nigeria, the principle for assessment of damages for breach of contract has its roots in the rule set out in the case of Hadley v Baxendale (1845) Excl 341. The Principle of law enunciated in this case is that damages in respect of breach of contract should be such as:
May fairly and reasonably arise naturally (i.e according to the usual course or things from such breach of contract itself): or
May reasonably be supposed to have been in the contemplation of both parties at the time they entered into the contract, as the probable result of breach.
In the case of British Airways v. Atoyubi (2014) 13 N.N.L.R (PT 1424) 253. The Supreme Court held that the rationale behind the compensatory thing of award of damages is to restore the injured party to the position in which it found itself prior to the breach. S.52 of the Sale of Goods of Act 18 provides that in an action for breach of contract concerning specific or ascertained goods, the court may on the application of the plaintiff, order that the defendant specifically perform the contract without him having the option of retaining the goods on the payment of damages. The order could be unconditional or could be done according to the terms and conditions which the courts think to be just.
Rescission of the contract is a remedy that allows the non-breaching party to cancel his her responsibilities under the contract. This remedy might be available when the contract was based on fraud or a mistake by one or both of the parties. It is also available if both parties prefer to cancel the contract and return any money that had been advanced as part of the contract. Restitution is a remedy designed to restore the injured party to the position occupied prior to the formation of the contract. Parties seeking restitution may not request to be compensated for lost profits or other earnings caused by a breach, instead restitution aims at returning to the plaintiff any money or property given to the defendant under the contract.
Plaintiffs typically seek for restitution when contracts they have entered are voided by courts due to a defendant’s incompetence or incapacity. The law allows incompetent and incapacitated persons to disavow their contractual duties, but generally only if the plaintiff is not made worse by their dissvowal.

Nkechi Bright Ewere