Breach of contract presentation of legal environment , by Ankit Rana , MBA student in University school of management, Kurukshetra university, Kurukshetra
1. 1
UNIVERSITY SCHOOL OF MANAGEMENT
(2022-24)
Presentation of legal environment
Submitted to: PRESENTED BY:
Dr. Meenakshi ANKIT RANA
MBA (SFS)
ROLL NO.-04
3. Agenda
1 2 3 4 5
Introduction Anticipatory
breach of
contract
Actual breach
of contract
Remedies for
breach of
contract
Refrences
3
4. BREACH OF CONTRACT
Breach of contract means refusal or
failure of any one party to perform his
contractual obligation under this
contract.
When either of the parties doesn‘t
perform his/her obligation as per the
contract is the breach of contract.
4
5. 1. Anticipatory breach of
contract
When the party declares his
intension of not performing the
contract before the performance is
due.
5
6. (i) Expressly by words spoken or
written
When a party to a contract has refuse to perform his
performance.
For example, Mr. A agree to sell his guitar to Mr. B on June 10, 2022, for an amount
of Rs.5,000. However he sells this guitar to Mr. C on June 7, 2022.
He inform to Mr. B before selling then it will become expressly breach.
6
7. (ii) Implied by the conduct of one
of the party
When a party to a contract disabled himself
from performing his promise in its entirety.
For example, Mr. A agree to sell his guitar to Mr. B on June 10, 2022, for an
amount of Rs.5,000. However he sells this guitar to Mr. C on June 7, 2022.
8. 2. Actual breach of
contract
The breach of contract in which the
parties refusal to perform the promise on
the schedule date or the due date is the
actual breach of contact.
8
9. (i) On due date of performance
If any party to a contract refuses or fails to perform his
part of the contract at the time fixed for performance.
For example, X agreed to sell to Y 10 tons of wheat @ Rs. 8000 per
ton to be delivered into two equal instalments on 20th October and
on 21st October. On 20th October X refused to deliver the goods it
is an actual breach of contract on due date performance.
9
10. (ii) During the course of performance
If any party has perform a part of the contract and then refuses or fail
to perform the remaining part of the contract.
For example, X agreed to sell to Y 10 tons of wheat @ Rs.8000 per
ton to be delivered into two equal instalments on 20th October and on
21st October. On 20th October X delivered 5 tons and refused to
deliver remaining 5 tons. It is an actual breach of contract during the
course of performance.
11. Remedies for breach of contract
1. Rescission
of contract
3. Suit for
specific
performance
5. Suit for
quantum
meruit
2. Suit for
damages
4. Suit for
injunction
12. 1.Rescission of contract
When breach of contract is committed by one party, the other party
may sue to treat the contract as rescinded. In such a case, the
aggrieved party is freed from all his obligation under the contract.
For example: Mohan makes a contract to sell certain goods to Sohan for Rs.10000
and Sohan promises to make the payment on delivery. If Mohan refuses to deliver
the goods at the promise time, Sohan can assure the contract to terminate. In this
case, he is freed from his commitment to pay Rs.10,000.
12
13. 2. Suit for damages
Damages are monitory compensation allowed for
loss suffered by the agree with party due to the
bridge of a contract.
For example, A promise to deliver 100 cycle tyres
at Rs.50 each to be on 1 May 2022, but does not
perform his promise on that date. In such
circumstances if the price of a cycle tyre on 1 may
is Rs.55 tyres then B is entitled to claim damages
at Rs.5 per tyre from A and sue for such damages.
14. TYPES OF DAMAGES
(a) Ordinary damage
Ordinary damages are
those which naturally arise
in the usual course of things
from such breach
(b) Special damage
Special damages are used
which may reasonable be
supposed to have an in the
contemplation of both
parties as the probable
result of the breach of
contract
(c) Exemplary or
punitive damage
Exemplary or punitive
damages are those which
are in the nature of
punishment
14
15. TYPES OF DAMAGES
(d) Nominal damage
Nominal damages are those
which are awarded where
there is only a technical
violation of a legal right but
the aggrieved party has not
in fact suffer and loss
because of breach of
contract
(e) Damage for
discomfort
If a party has suffered
physical inconvenience and
discomfort due to breach of
contract that party can
recover the damages for
such inconvenience and
discomfort
(f) Liquidated damage
When the parties to a
contract at the time of
formation of contract specify
a sum which will become
table by the party
responsible for breach
15
16. 3. Suit for specific performance
Suit for specific performance means demanding the court direction to the
defaulting party to carry out the promise according to the terms of the
contract.
For example; X agreed to sell an old painting to Y for Rs.50,000.
Subsequently, X refused to sell the painting. Here, Y may file a suit
against X for the specific performance of the contract.
16
17. 4. Suit for injunction
Suit for injunction means demanding court’s stay order. Injunction means an
order of the court which prohibits a person to do a particular act. Where a party
to a contract does something which he promised not to do, the court may issue
an order prohibiting him from doing so.
In the case of Warner Bros. vs. Nelson, a film actress agreed to act exclusively
for Warner Bros for a year and for no other producer. During the year, she
contracted to act for another producer. It was held that she could be restrained
by injuction from doing so.
18. 5. Suit for quantum meruit
Quantum meruit means as much as is earned. Right to Quantum
meruit means a right to claim the compensation for the work already
done.
For example: A promise to construct a house for B for @Rs.50,000. After a has
started construction, but before its completion B abrogates the contract and stops A
from work. In such situation, A can sue for an adequate compensation for the work
that he has already done and can also sue for damages.