Advait Private Limited (APL) signed an annual contract for the maintenance of its computers with Sun Computers Limited (SCL), on 20 August 2023. The contract was for the Calendar year starting from 1 January 2024 to 31 December 2024. The total value of the contract was Rs. 10 Lakh. On 21 August 2023, following the business compulsions, APL made some changes. It sold all its computers and decline to proceed with the contract with SCL. The SCL is claiming damages from the APL for breach of contract.

Parties are in dispute.

Question

Advait Private Limited (APL) signed an annual contract for the maintenance of its computers with Sun Computers Limited (SCL), on 20 August 2023. The contract was for the Calendar year starting from 1 January 2024 to 31 December 2024. The total value of the contract was Rs. 10 Lakh. On 21 August 2023, following the business compulsions, APL made some changes. It sold all its computers and decline to proceed with the contract with SCL. The SCL is claiming damages from the APL for breach of contract.  
   
 Parties are in dispute.

Accepted Answer

SCL can claim the profit they would have earned had the project gone through, as the damages.

Answer

SCL cannot claim damages as, in just a day, they could not have suffered any loss.

Answer

SCL cannot claim damages as the contract has not started.

Answer

SCL has no other option but to get out of the contract without any damages

Crowdly

Advait Private Limited (APL) signed an annual contract for the maintenance of it...

Want instant access to all verified answers on moodle.iima.ac.in?