Breach of Contract - Meaning, Types and Remedies for Breach of ContractIndian Contract Act 1872 Notes
Meaning of Breach of Contract
A breach of contract occurs when a party thereto without lawful excuse does not fulfill his contractual obligation or by his own act makes it impossible that he should perform his obligation under it. A breach to a contract occurs in two ways:
Types of Breach of Contract
a) Actual
Breach: When a party fails, or neglects or refuses
or does not attempt to perform his obligation at the time fixed for
performance, it results in actual breach of contract. For e.g. A promises to
deliver 100 packs of ice-cream to B on his wedding day. A does not deliver the
packs on that day. A has committed actual breach of the contract.
b) Anticipatory
Breach: Anticipatory Breach is a breach before the
time of the performance of the contract has arrived. This may take place either
by the promisor doing an act which makes the performance of his promise
impossible or by the promisor, in way showing his intention not to perform it.
Remedies for Breach of Contract
The five basic remedies for breach of contract
are available:
1)
Money damages: When
the contract is breached by a party, the common law remedy available for
aggrieved party is monetary compensation which is called money damage. Money
damage includes a sum of money that is given as compensation for financial
losses caused by a breach of contract. The purpose of providing monetary
compensation to the aggrieved party to put him into the same financial position
he would have been in the contract had been properly performed.
2)
Restitution: Restitution
is a remedy designed to restore the injured party to the position occupied
prior to the formation of the contract.
3)
Rescission:
Rescission is the name for the remedy that terminates the contractual duties of
both parties. it seeks to place the parties back in their pre-contractual
position.
4)
Injunction: The
injunction is an order of the court requiring a person to refrain from doing
some act which has been the subject matter of contract. The power to grant
injunction is discretionary. This remedy is preventive in nature. This remedy
is helpful in case of anticipatory breach of contract.
5)
Specific performance:
Specific performance is an equitable remedy that compels one party to perform,
his or her duties specified by the contract. In some case, the performance of
contractual obligations for a party may be more valuable which cannot be
compensated in money. In such circumstances, he can approach to the court for
specific performance of the contract.
6) Quantum meruit: The term “quantum merit” means, ‘as much as he deserves’ or ‘as much as earned’. A suit of quantum meruit is a claim for the value of the material used or supplied under a contract that has become void on account of breach by the other party. When a contract becomes void, any person who has received any advantages under such contract is bound to restore it, to the person from whom he received it.
Also Read: The Indian Contract Act, 1872 Important Questions
Part A
Q.” All Contracts are Agreements but all Agreements are not Contract.” Explain. Or what are the essentials of a valid contract? 2012, 2014, 2016, 2019, 2020, 2021, 2022
Q. What are various types of Contract? Distinguish between Valid, Void and Voidable contract. 2019
Q. “No Consideration, No Contract”. What are the Exceptions to this rule? 2012, 2015, 2017, 2018
Q. What is Offer and Acceptance? Explain the rules relating to offer and acceptance.
Q. What is Free Consent? When a consent is said to be free? 2021
Q. Write Short notes on:
Ø Fraud and Misrepresentations
Part B
Q. What are the various modes of Discharge of a Contract? 2013, 2014, 2017, 2019, 2022
Q. What do you mean by Breach of Contract?What are the remedies available for Breach of Contract?
Q. What is contingent contract? Explain its essentials and rules. 2018
Q. What is Quasi contract? Explain its various types with examples. 2015, 2022SN
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