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LawBytes · Legal Guides

Breach of Contract: Remedies Available in Pakistan

Damages, specific performance and rescission — the remedies for breach, and how to choose between them.

When a contract is breached, Pakistani law offers more than one route to a remedy, and which one to pursue depends on what the innocent party actually wants out of the outcome.

Damages

The default remedy for breach of contract, governed by the Contract Act 1872, is compensation for loss naturally arising from the breach, or loss the parties knew was likely to result from it when the contract was made.

Specific performance

Where damages would not adequately compensate the loss — most commonly with property or unique goods — specific performance under the Specific Relief Act 1877 compels the breaching party to actually perform the contract rather than pay compensation.

Rescission

Rescission cancels the contract and restores the parties to their pre-contract position, generally appropriate where the contract was induced by misrepresentation or where continuing performance is no longer viable.

Mitigation matters

A party claiming breach is generally expected to take reasonable steps to mitigate its loss rather than allow it to accumulate unchecked, and failure to mitigate can reduce the damages ultimately recoverable.

What to do next

Bring the contract, evidence of the breach, and a clear account of the loss actually suffered, so the appropriate remedy can be identified.

Written by

Waleed Mansoor

Advocate High Court · Founding Principal

LL.B., University of the Punjab. Diploma in Tax and Forensic Laws. Founder of LawBytes, and formerly Director of the Legal Leadership Forum. Practises across litigation, corporate, regulatory and immigration matters.

More about the practice

This is general legal information, not advice. It describes how a process generally works and does not address the facts of any particular matter. Reading it does not create a lawyer–client relationship, and outcomes depend on the specific facts of each case.

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