BREACH OF CONTRACT

DISCHARGE OF CONTRACT

When obligations created by a contract comes to an end, contract said to be discharged or terminated.

A contract may be discharged in any of the following ways...

By Performance By mutual agreement By Impossibility of Performance By Breach Of Contract By Operation of Law By laps of time

BREACH OF CONTRACT

“ Breach of contract means failure or refusal by the parties to perform their respective promises”

Types of Breach of Contract

Breach of contract may arise; 1.Anticipatory Breach

2.Actual breach

1.Anticipatory Breach

“An anticipatory breach occurs when a party demonstrates his intention to break a

contract” Vocal or written confirmation is not required, Failure to perform an obligation in a timely matter can

result in a breach. By declaring an anticipatory breach, the counterparty

may begin legal action immediately rather than waiting until a contract's terms are actually broken.

Ie: Rajesh Agrees To Marry Shantha, Before the date of Marriage Rajesh Heard that Shantha Going to Marry Sudharman.

2.Actual breach

“ Actual breach of contract occurs when during the performance of the contract or at the time of

performance, one party fails or refuses to perform his promise under the contract”

Example: Ashitha Agrees to deliver 10 kg of Rice to Mansoor on 1st November, Ashitha fails to deliver the rice to Mansoor on November 1st This is actual breach

of contract by Ashitha.

Remedies For Breach Of Contract

When there is a breach of contract, aggrieved party can take the following Remedies;

Recession of the Contract Quantum Meruit Specific Performance Injuction Damages

Recession of the Contract

When there is a breach of contract by one party the other party can rescind the contract and he is free from all obligations of under the contract.

Example: A agrees to deliver 10kg rice to B on 1st oct. B promises to pay the price on the same day. A does not deliver the rice.B need not pay the price

Quantum MeruitQuantum meruit means as much as earned. It is only

an obligation created by law. It is not a contractual remedy, such obligation arises and a person claim payment in the following cases;

When work has been done or goods supplied without any contract.

When the original contract has been terminated breach of contract by one party

When work has been made and accepted under a void agreement

Example: C was appointed as MD of a company. The contract was void because the directors who appointed C were not qualified. C sued for Remuneration.Held that C is entitled to remuneration.

Specific Performance

Specific performance means an order of the court directing the party who commits breach of contract to do what he has promised to do.

Generally specific performance will not be ordered in the following cases;

When monitory compensation is an adequate remedy. Contracts of personal nature When one of the parties is minor. When the contract is uncertain an inequitable to party.

Injuction

Injuction is an order of the court directing the party who commits breach of contract either to do or not to do something. It is usually given in cases of anticipatory breach of contract.Example : Mammootty agreed to act only for shaji

kailas for one year. During the year he contracted to act for Vinayan. In a suit filed by Shaji kailas, Mammootty was prohibited by an injuction from acting for Vinayan.

Damages

The amount of compensation awarded to the aggrieved party for breach of contract.Damages allowed are the following types; Compensatory/ordinary damages Nominal damages Special damages Exemplary vindictive of punitive damages