Breach of contract (1)
Download as PPT, PDF113 likes61,013 views
This document discusses various ways in which a contract can be discharged or terminated, including through performance, mutual agreement, impossibility of performance, breach of contract, operation of law, or lapse of time. It describes two types of breach of contract: anticipatory breach, which occurs when a party demonstrates intention to break the contract before performance is due, and actual breach, which occurs when a party fails to perform an obligation under the contract at the required time. Finally, it outlines several remedies available to an aggrieved party in the case of breach of contract, such as recession of the contract, quantum meruit, specific performance, injunction, and damages.
Breach of contract (1)
- 4. DISCHARGE OF CONTRACT When obligations created by a contract comes to an end, contract said to be discharged or terminated.
- 5. 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
- 6. BREACH OF CONTRACT “ Breach of contract means failure or refusal by the parties to perform their respective promises”
- 7. Types of Breach of Contract Breach of contract may arise; 1.Anticipatory Breach 2.Actual breach
- 8. 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.
- 9. 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 1 st November, Ashitha fails to deliver the rice to Mansoor on November 1 st This is actual breach of contract by Ashitha.
- 10. 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
- 11. 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 1 st oct. B promises to pay the price on the same day. A does not deliver the rice.B need not pay the price
- 12. Quantum Meruit Quantum 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 .
- 13. 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.
- 14. 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.
- 15. 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