Remedies for breach of contract: damages and the assessment

• Main Authors: Masum, Ahmad, Lilienthal, Gary, Ali Mohamed, Ashgar Ali, Ahmad, Muhamad Hassan
• Format: Book Chapter
• Language: English
• Published: CLJ Malaysia Sdn Bhd 2024
• Subjects: K Law (General); K600 Private Law
• Online Access: http://irep.iium.edu.my/115760/1/115760_Remedies%20for%20breach%20of%20contract.pdf; http://irep.iium.edu.my/115760/; https://www.cljlaw.com/store/product/contract-law-in-malaysia/
• Institution: Universiti Islam Antarabangsa Malaysia

A breach of contract is a civil wrong. Breach of a contract can also occasionally be a criminal offence,1 but in most cases, it will involve only civil liability. If a party fails to meet their obligations under the contract, then the innocent party will be able to pursue an action for damages to compensate them for their loss. Generally, there are two types of losses for which the plaintiff may claim damages, i.e., pecuniary losses and non-pecuniary losses. Pecuniary losses are losses that can be quantified in financial terms, such as loss of profits and expenses incurred, whereas non-pecuniary losses are losses that cannot be precisely stated in financial terms, such as pain and suffering, embracement, etc. A claim for damages is one for compensation in money for the fact that the claimant has not received the performance for which he bargained. It is always available, as of right, when a contract has been breached. An action for damages can succeed even though the claimant has not suffered any loss; in that event, it will result in an award of nominal damages. The governing purpose of damages has already been well settled, i.e., “to put the party whose rights have been violated in the same position, so far as money can do so, as if his rights had been observed”.2 It is, therefore, crucial to note from the beginning that the object of an award of damages is to place the plaintiff, so far as money can do it, in as good a position as he would have been had the defendant performed the contract.3