When one of the obligations outlined in a contract is not completed in accordance with the provisions of the contract, this constitutes a breach. There are numerous instances of alleged breaches of contract that aren’t completely cut and dry, with one side opposing the breach.
Injunctive relief, also known as an “injunction,” is a legal remedy that may be sought from the courts to compel a defendant to refrain from doing something (or to compel them to do something) in accordance with the terms of the case. Injunctions are applicable in a wide variety of contexts, including commercial and construction litigation, healthcare law, and conflicts involving employment or employment contracts. In this article, Injunction Relief For Breach Of Contract, we consider the process and mechanism involved.
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Can injunctions be used as a remedy for breach of contract?
Injunctions, much like specific performance, can be used as a remedy for breach of contract in situations where monetary damages would not be sufficient to resolve the issue. An injunction may be issued, for instance, to guarantee that a party does not disclose confidential commercial material or to prevent a party from disposing of property that is subject to the contract. Injunctions can be one of the following:
- Mandatory – ordering a party to do something, or
- Prohibitory – ordering a party to refrain from a particular course of action.
What are the requirements of an injunction?
- The party seeking an injunction must have a legitimate underlying claim.
It must be able to demonstrate that its legal rights have been or will be compromised by the other party’s actions, or that the other party has behaved in an unconscionable manner or is likely to do so. A cause of action must be actionable (i.e., capable of forming the basis of a lawsuit before the court).
- Injunctions are a discretionary form of relief. They are equitable remedies, which implies:
- The court is never compelled to grant an injunction and will exercise its discretion to do so only when it appears just and expedient to do so.
- An injunction is subject to the usual equitable rules, including: Any delay in applying for an injunction can severely harm the chances of obtaining one and the party seeking the injunction must have “clean hands” (i.e., they must have acted appropriately themselves).
- Damages are not an acceptable remedy. The court will not grant an injunction if monetary compensation would be an adequate remedy (i.e., if the party seeking the injunction can be fully compensated by monetary damages alone).
The use of injunctions in more detail
When determining the amount of damages to be awarded, financial loss is taken into consideration. It is not always sufficient or “enough” as a remedy to compensate the innocent party for a breach of contract.
When this occurs, legal measures known as injunctions can be utilised to prevent further breaches of the contract.
However, injunctions are not an option in the event that the innocent party terminates the contract as a result of the guilty party’s repudiatory breach. This is due to the fact that termination results in the conclusion of the contract.
Therefore, in the event that a breach of contract has occurred but the agreement has not been cancelled, the party that was not at fault may choose to keep working under the terms of the contract. For instance, the breach could lead to the following:
- The innocent party to be in breach of other contracts,
- Financial loss that cannot be easily assessed in damages, or
- Other substantial ongoing damage to the firm, such as continual breaches of restrictive covenants.
It is because of this inadequacy of damages that the court has the authority to grant injunctions and specific performance orders.
As previously mentioned, injunctions can be either mandatory or prohibitory, according to one classification: Injunctions that are prohibitory put a halt, limit, or prevent behaviour; injunctions that are mandatory force or compel behaviour to be performed. A person who is subject to a mandatory injunction, as the name suggests, is required to actively do something in order not to breach the court order, rather than choosing to do nothing at all.
The majority of the time, the courts will issue prohibitory injunctions. It clarifies more specifically what the individual is required to refrain from doing in order to behave in a manner consistent with the stipulations of the court order. It is an essential consideration due to the fact that a sanction for contempt of court may be imposed in the event that the court order is disobeyed. There is the potential for monetary fines, the sequestration (sometimes known as permanent confiscation) of property, jail time, and even a visit from the bailiffs.
Complaints of many kinds may be lodged with the court if a person is ordered by the judge to perform a certain action, including the following types of complaints:
- Whether the individual did what was instructed, properly
- Whether the person did it in a way which wasn’t meant
- And then performing the (specified act) itself can not have the desired result
It is much simpler to determine whether the order has been obeyed or not when a prohibitory injunction contains a provision that asks the question: Did they engage in the activity that was forbidden, or did they not?
In other words, the perspective held by the courts is that it is preferable to prevent a person from engaging in certain activities, rather than to compel that person to engage in such acts when it is feasible to do so.
Under what circumstances can you apply for an injunction?
An injunction may be required to preserve or prevent the loss of an asset, to protect against personal injury, to prevent the loss or tarnishing of reputation, and to protect business or personal interests. There are stringent principles in place to determine whether a party is entitled to an injunction given their draconian nature.
Once court proceedings have commenced, a request for an injunction can be submitted. Alternately, the court may grant an injunction prior to the commencement of court proceedings if the matter is imperative or if it is in the best interests of justice to do so.
An injunction issued prior to the trial is known as an interlocutory or interim injunction. It can be stated to be in effect for a specific period of time. Aside from that, it remains in effect until the trial or until the court issues a further order. The court will determine whether or not to issue a final injunction during the trial.
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We have a proven track record of dealing with injunctions and litigation. We will guide you through the process and ensure all checks are carried out swiftly and efficiently. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.
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It is important for you to be well informed about the issues and obstacles you are facing. However, expert legal support is crucial in terms of reducing risk, saving you money and ensuring you achieve a positive outcome.
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Disclaimer: This article provides general information only and does not constitute legal advice on any individual circumstances.
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