A Contract between Two Parties

As mentioned before, contract is an agreement or promise made between two or more parties that the courts will enforce. It is also meaning that both parties involved have to keep the promises that they were made. In some cases, they cannot keep the promise that they was made in the contract is called breach of contract. Breach of contract is a legal cause of action in which a contract is not enforce by one or another party. For example, the person can be said to breach the contract if that person does not fulfill his contractual promise. Besides that, the person who is given information to another person that he cannot take responsibilities for what he or she did mentioned in the contract also can be said as he or she is breach the contract. Sometimes, that person usually would not inform whoever that he or she cannot keep the promises has been made, but we can know that person unable to perform the contract by his or her action and conduct. In this case, it also can be said as breach the contract.

1.2 Three Types of Remedies

Once the contracts terms are broken, the consequences can be significant since the contract is enforceable by court. If it is obvious that the other party cannot keep the promise that was made in the contract, which is breached a contract. Thus, the plaintiff has a right to pursue a variety of options. Three of the types of remedies available for breach of contract are damages, specific performance, and injunction.

a. Damages

– Damages are a common law and awarded as of right. It can be defined as the losses or costs incurred to a party due to anothers wrongful act. Besides that, it is a compensation which is granted to a party for the damage, loss or injury he or she has suffered through a breach of contract. It might be the money to reimburse the party who is suffered from breach of contract for costs to compensate for loss. In other words, to enable the innocent to receive monetary term of compensation is the main purpose of the damages. From the damages, it can be established in many types. One of it is liquidated damages. Liquidated damages are damages specified in the contract that would be payable if cannot done on specified time. Usually, a specific penalty will be stated in a contract if the contract terms are not fulfilled on an agreed-upon date. For example, a building contractor has agreed to complete an apartment within a year. Therefore, some penalties may be built into the contract if the job is not completed on time. Definitely, the contractor may have offered the penalty option as an incentive due to protect himself against from breach of contract. As a result, the liquidated damages could be imposed when a contract has been breached by one party.

b. Specific performance

– Specific performance is the court orders the defendant to fulfill their promises that they was made in the contract. The main purpose of the specific performance is to place the parties in the position that they would have been in the contract to perform their role. It is a remedy compelling performance. It is being an optional remedy in some cases, such as where the damages may not be granted to provide an adequate remedy, where terms of the contract are uncertain, where there has been delay in bringing the action, where there was fraud, and other similar cases. Normally, the party that breached the contract is taken to court when this option is selected. At the same time, the plaintiff will request that the court to force the defendant to perform the specific contract terms that have not been performed. For example, Cindy offers to buy Kittys house and Kitty has accept. So that, they have been signed a contract to agree with that. After they signed the contract, Kitty decides to keep the property. Since there is no other property or house is exactly like Kittys house, so Cindy may be entitled to specific performance on the contract. In this case, Cindy could bring legal action to force the Kitty to keep hers promise that she has been made in the contract.

c. Injunction

– The definition of an injunction is an equitable remedy in the form of a court order. From the injunction to requires a party to do, or to refrain from doing, certain activities in the future. Normally, the decision make by the court is intended to prevent from harm which is often irreparable harm. Besides that, they are also designed to provide a remedy for harm that has already occurred. Actually, injunction can be established in many types. The primarily situation can be an injunction use is where money damages cannot satisfied by a plaintiff, or to protect personal or property rights from permanent harm. Generally, an injunction is issued while pending actions are dubbed preliminary. At the same time, they are intended to protect the plaintiff’s interest during this period. By doing this can prevent a final judgment from being fairness. For example, Marine offers her car for RM45000 to anyone which is interested. Lilly has interested in her car, so she accepted and agrees with pay for RM45000. Therefore, Lilly signs a contract to buy a car from Marine. At the moment, Marine found that Jojo willing to pay for RM50000 to buy her car. Thus, she is going to sell her car to Jojo. In this case, Lilly has a right to apply for an injunction from the court. The court will require Marine refrain from selling her car to Jojo.

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1.3 Conclusion

Contract can be defined as an agreement or promise made between two or more parties that the courts will enforce. That is mean both parties involved in the contract have to keep the promises that they were made. Sometimes, one of the parties cannot keep the promises that he or she was made in the contract. For this case, we are calling it as breach of contract. Once this happened, the parties involved have to think about the remedies. Some of the remedies available for breach of contract are damages, specific performance, and injunction. First type of remedies for breach of contract is damages. Generally, damages are a compensation which is granted to a party for the damage, loss or injury he or she has suffered through a breach of contract. While for the second type of remedies is specific performance. It is the court orders the defendant to fulfill their promises that they was made in the contract. For another type of remedies is injunction. An injunction is an equitable remedy in the form of a court order to require a party to do, or to refrain from doing, certain activities in the future.