Remedies for Breach of Contract in Bangladesh

BDLP regularly assists individuals and businesses in breach of contract situations and cases arising out of contract infringements.

A breach of contract occurs when one party fails to perform its obligations under a contract without a lawful excuse. In Bangladesh, a breach of contract is governed by the Contract Act, 1872.

Under Bangladesh law, there are several remedies available to a party whose contract has been breached:

1. Damages: The most common remedy for a breach of contract is damages, which is a monetary compensation awarded to the aggrieved party for the loss suffered as a result of the breach. The amount of damages awarded will depend on the nature and extent of the loss suffered.

2. Specific performance: This remedy requires the party in breach to perform the specific obligation under the contract. Specific performance is generally available in cases where damages may not be an adequate remedy.

3. Rescission: Rescission allows the aggrieved party to cancel the contract and be released from all obligations under it. This remedy is generally available in cases where the breach is so serious that it goes to the root of the contract.

4. Injunction: An injunction is a court order that requires the party in breach to refrain from doing something or to do something. This remedy is generally available in cases where the breach involves a continuing wrong.

It is important to note that the availability of these remedies may be subject to certain limitations and conditions under the Contract Act, 1872 and other relevant laws in Bangladesh. It is recommended that legal advice be sought in the event of any particular breach of contract.