Contract Disputes

Navigating Contract Disputes in India: Legal Remedies and Best Practices

  • 10 Nov 2025
  • KP Law & Legal Associate

Contracts form the foundation of commercial and personal agreements. Disputes can arise due to breach, misrepresentation, or non-performance.

Common Causes of Contract Disputes

  • Breach of contract

  • Ambiguous contract terms

  • Fraudulent inducement

  • Delayed performance or non-payment

Legal Remedies

  • Specific performance under Indian Contract Act, 1872

  • Compensation for breach

  • Injunctions to prevent further violations

  • Alternative dispute resolution via arbitration or mediation

Prevention Tips

  • Clear and precise contract drafting

  • Proper documentation and signatures

  • Legal review before signing

“A well-drafted contract prevents disputes before they arise.”

FAQs

Q1. What constitutes a breach of contract?
A: Non-performance or violation of agreed terms.

Q2. How can disputes be resolved outside court?
A: Through arbitration, mediation, or negotiation.

Q3. Can compensation be claimed for non-performance?
A: Yes, under Indian Contract Act, 1872.

Q4. Is specific performance always granted?
A: Only when monetary compensation is inadequate.

Q5. How to prevent contract disputes?
A: By drafting clear terms and seeking legal review.