Summary of Rules relating to Award of

Damages for Breach of Contract.

1. The insured party is to be placed in the same
financial position as if the contract has been
performed
2. Damages which may fairly and reasonably be
considered as fair and naturally arising from the
breach of contract can be recovered.
3. Damages which may reasonably be supposed to
be in the contemplation of the parties, at the
time of entering in to the contract, as the
probable result of beach, though not naturally
arising out of the breach, can be recovered.
Summary of Rules relating to Award of
Damages - 2.

4. Damages which do not fall under the category of
rule 2 and 3 above, but are the result of special
circumstances peculiar to the case, called special
damages - are not recoverable

- unless the special circumstances are brought
to the notice of the other party
- before the contract is made.

5. It is the duty of the injured party to minimise
damages.



Summary of Rules relating to Award of
Damages - 3.
6. If the parties agree about the damages, for
breach of contract No More than the agreed
amount can be recovered.

7. The injured Party is not disentitled to damages
because it is difficult to assess them.

8. Vindictive or Exemplary damages cannot be
awarded for breach of
- contract of marriage, and
in certain circumstances,
- of negligence act of a Bank in honouring
cheques.