Breach of Contract

Breach of contract is  a legal cause of action in which a binding agreement or bargained for exchange is not hovered by one or more of the parties to the contract by non performance or interference with the other party’s performance. If the party does not fulfill his contact promises or has given information to the other party that he will not perform his duty as mentioned in the contract or if by his action and conduct he seems to be unable to perform the contract, he is said to breach the contract.A breach of contract is where a party to a contract fails to perform, precisely and exactly, his obligations under the contract. This can take various forms

For example, a)the failure to supply goods or perform a service as agreed.
b) A agrees to dine at B house but for some reason he fails to attend the                                          dinner. So there is no breach of contract because it was on mutual consent                                but no legal obligation .Whereas if the agreement was bonded with the                                        legal terms, and if then A fails to attend the dinner it becomes a breach of                                  contract.

A contract being a correlative set of rights and obligations for the parties would be of no value, if there were no remedies to enforce the rights arising there under. The Latin maxim Ubi jus, ibi remedium denotes where there is a right, there is a remedy. Where the promisor neither performs his contract nor does he tender performance, or where the performance is defective, there is a breach of contract.

Types of  breach of contract

(i) Actual: The actual breach may take place either at the time the performance is due, or when actually performing the contract.
(ii) Anticipatory: The anticipatory breach, i.e., a breach before the time for the performance has arrived. This may also take place in two ways, by the promisor doing an act which makes the performance of his promise impossible or by the promisor in some other way showing his intention not to perform it.

Breach of contract may occur, before the time for performance is due. This may happen where one of the parties definitely renounces the contract and shows his intention not to perform it or does some act which makes performance impossible. The other party, on such a breach being committed, has a right of action for damages. He may either sue for breach of contract immediately after the breach is made or wait till the actual date when performance is due and then sue for breach. If the promisee adopts the latter course, i.e., waits till the date when performance is due he keeps the contract alive for the benefit of the promisor as well.


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