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Section 75, Contract Act 1872: Party Rightfully Rescinding Contract, Entitled To Compensation

Section 75 under the Chapter VI (Of the consequences of breach of contract) of the Contract Act, 1872 of India - 'Party rightfully rescinding contract, entitled to compensation', is reproduced hereunder:—

“A person who rightfully rescinds a contract is entitled to compensation for any damage which he has sustained through the non-fulfilment of the contract.

Illustration

A, a singer, contracts with B, a manager of a theatre, to sing at his theatre for two nights in every week during the next two months, and B engages to pay her 100 rupees for each night's performance. On the sixth night, A wilfully absents herself from the theatre, and B, in consequence, rescinds the contract. B is entitled to claim compensation for the damage which he has sustained through the non-fulfilment of the contract.”

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