Anil Audichya
Asked September 16, 2016

Breach of contract by a company

  • 2 Answers
  • 233 Views

A company offered me a job for Jaipur location previously I was working in Delhi. When I reached Jaipur company asked me to wait and after 5 days they are sending me Chennai or other location. They change their comments every week. I already left my previous job. 1 month over but they didn't give me a job in Jaipur I am sitting at home last 1 month. can I take any legal action against the company? I am also in financial difficulties due to traveling food rented house in Jaipur.

Answers 2

Clearly it is a breach a contract on the part of the company that offered job offer. Contract is nothing but meeting of minds between the parties i.e. there is a proposal and there is an acceptance to the proposal, backed by a consideration. Consideration may consist of a promise to perform a desired act or a promise to refrain from doing an act that one is legally entitled to do or anything monetary. 

Here you have 2 remedies to the breach caused to you:-

  • Suit for damages
  • Suit for specific performance

Damages means monetary compensation for the loss incurred due to the performance or non performance of a work that was obligated on the part of the defendant as a result of the contract. Hence you can either demand for the loss of money cause you aren’t getting recruited and getting a salary from the company, also for the money that you are incurring in paying the rent and other personal expenditure like travelling and food, or[1]

You can file a suit for specific performance. It is on the discretion of the court to direct the party to carry out the performance according to the terms of the contract. in general, the court can direct the company to recruit you in their company soon.

In the following cases a specific performance can be allowed:-

  • Where there exists no standard for ascertaining the actual damages caused to the aggrieved party for the non-performance.
  • Where monetary compensation will not be adequate relief .
  • Where the act to be done is in the performance of trust
  • Where the court finds the reason just and equitable[2]
  • I would suggest you should file for both the remedies, for specific performance and for the damages you incurred in the last one month.  Along with the ordinary compensation that will arise naturally and directly from the breach of the contract, you can also file for exemplary damages, for the damages suffered due to mental and emotional suffering.

     

    [1] Section 73 of The Indian Contract Act, 1872:- Compensation of loss or damage caused by breach of contract: When a contract has been broken, the party who suffers by such breach is entitled to receive, form the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it. Such compensation is not to be given for any remote and indirect loss of damage sustained by reason of the breach. Compensation for failure to discharge obligation resembling those created by contract : When an obligation resembling those created by contract has been incurred and has not been discharged, any person injured by the failure to discharge it is entitled to receive the same compensation from the party in default, as if such person had contracted to discharge it and had broken his contract. Explanation : In estimating the loss or damage arising from a breach of contract, the means which existed of remedying the inc

     

    [2] Part II of the Specific Relief act, 1963

    Agree Comment 0 Agrees about 1 year ago
    Consult Now

    Clearly it is a breach a contract on the part of the company that offered job offer. Contract is nothing but meeting of minds between the parties i.e. there is a proposal and there is an acceptance to the proposal, backed by a consideration. Consideration may consist of a promise to perform a desired act or a promise to refrain from doing an act that one is legally entitled to do or anything monetary. 

    Here you have 2 remedies to the breach caused to you:-

    • Suit for damages
    • Suit for specific performance

    Damages means monetary compensation for the loss incurred due to the performance or non performance of a work that was obligated on the part of the defendant as a result of the contract. Hence you can either demand for the loss of money cause you aren’t getting recruited and getting a salary from the company, also for the money that you are incurring in paying the rent and other personal expenditure like travelling and food, or[1]

    You can file a suit for specific performance. It is on the discretion of the court to direct the party to carry out the performance according to the terms of the contract. in general, the court can direct the company to recruit you in their company soon.

    In the following cases a specific performance can be allowed:-

  • Where there exists no standard for ascertaining the actual damages caused to the aggrieved party for the non-performance.
  • Where monetary compensation will not be adequate relief .
  • Where the act to be done is in the performance of trust
  • Where the court finds the reason just and equitable[2]
  • I would suggest you should file for both the remedies, for specific performance and for the damages you incurred in the last one month.  Along with the ordinary compensation that will arise naturally and directly from the breach of the contract, you can also file for exemplary damages, for the damages suffered due to mental and emotional suffering.

     

    [1] Section 73 of The Indian Contract Act, 1872:- Compensation of loss or damage caused by breach of contract: When a contract has been broken, the party who suffers by such breach is entitled to receive, form the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it. Such compensation is not to be given for any remote and indirect loss of damage sustained by reason of the breach. Compensation for failure to discharge obligation resembling those created by contract : When an obligation resembling those created by contract has been incurred and has not been discharged, any person injured by the failure to discharge it is entitled to receive the same compensation from the party in default, as if such person had contracted to discharge it and had broken his contract. Explanation : In estimating the loss or damage arising from a breach of contract, the means which existed of remedying the inc

     

    [2] Part II of the Specific Relief act, 1963

    Agree Comment 0 Agrees about 1 year ago
    Consult Now

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