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Pravesh DabasAdvocate Delhi, India

04 · Business & Corporate

Contractual Disputes

Contractual disputes arise when a party fails to perform, performs late or badly, or disputes what the contract requires.

What this covers

  1. 01Breach of contract and damages
  2. 02Termination and its consequences
  3. 03Specific performance
  4. 04Liquidated damages and penalty clauses
  5. 05Interpretation of contract terms

How it generally works

Under sections 73 and 74 of the Indian Contract Act, 1872, a party who suffers loss from a breach can claim compensation. Where the contract names a sum for breach, courts generally award reasonable compensation up to that sum.

In some cases, particularly for property, a court can order specific performance — requiring the contract to be carried out — under the Specific Relief Act, 1963.

The contract's dispute resolution clause determines whether the dispute goes to court or to arbitration.