Indian Contract Act, 1872
75. Party rightfully rescinding
contract, entitled to compensation
A person who rightfully rescinds a contract is entitled to
consideration for any damage which he has sustained through the non-fulfillment
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 willfully absents herself from the theatre, and B, in consequence, rescinds
the contracts. B is entitled to claim compensation for the damage which he has
sustained through the nonfulfilment of the contract.