Contract disputes in Bangladesh are primarily governed by the Contract Act, 1872, which provides the basic framework for contract formation, performance, and breach. When disputes arise, parties can seek remedies through the civil courts or alternative dispute resolution methods. In court proceedings, the aggrieved party can file a suit for breach of contract, seeking remedies such as damages, specific performance, or injunction. The Specific Relief Act, 1877 provides the framework for specific performance and injunctions. Damages are the most common remedy for breach of contract, aimed at putting the aggrieved party in the position they would have been in had the contract been performed. Liquidated damages clauses in contracts are generally enforceable, subject to certain limitations. Alternative dispute resolution methods, such as arbitration and mediation, are gaining popularity in Bangladesh. The Arbitration Act, 2001 provides the legal framework for arbitration proceedings. Mediation is often used in commercial disputes, with the Bangladesh International Arbitration Centre (BIAC) playing a key role in promoting these methods. The concept of frustration of contract, where performance becomes impossible due to unforeseen circumstances, is recognized under Section 56 of the Contract Act. The doctrine of privity of contract is generally followed, but exceptions have been developed through case law. Recent developments in contract law include the recognition of electronic contracts under the Information and Communication Technology Act, 2006. The courts in Bangladesh have also been increasingly willing to look at the intention of the parties and the surrounding circumstances when interpreting contracts, moving away from a strictly literal approach.