3. *
*Every contract imposes obligations
on both the parties to it. When one
of them fails try refuses to perform
the obligations imposed upon him by
the contract, this is known as
“Breach of contract.”
4. *
*The party causing breach of contract is called
the ‘guilty party’ and the other party is called
the ‘injured’ or ‘aggrieved party’. This breach
confers upon the aggrieved party a right of
action against the guilty party.
5. *
Breach of contract may be of two kinds:
a. Anticipatory Breach
b. Actual Breach
6. *
*When before the contract becomes due for
performance, one of the parties to it shows
his intention not to perform the contract,
this is called anticipatory breach of contract.
It is an announcement by one of the party of
his intention not to fulfill the contract.
7. *
When at the time of performance of contract one of the
parties to the contract fails, neglects or refuses to perform or
does not perform his obligations, such breach is said to be
actual breach of contract. Actual breach can be of the
following types:
a) On the due date of performance .
b) During the performance of the contract .
8. *
Remedy means course of action available to
an aggrieved party when other party
breaches the contract. Various remedies
are provided to innocent party in case of
breach of contract.
9. 1.
Main purpose of damages is to enable the
innocent party to receive MONETARY
COMPENSATION.
Damages are a common law remedy and
awarded as of right.
They are calculated based on looking at what
the position of the plaintiff would have been if
the contract had been properly performed.
Types of Damages : ordinary damages ,
nominal damages and exemplary damages
10. *
*It means, demanding an order from court that promise
agreed in contract shall be carried out.
*It is only granted at the court’s discretion where the court
can supervise the implementation of the contract.
* The court may enforce the specific performance of a
contract when the compensation cannot be measured or is
not an adequate relief to the injured party.
Cases when specific
performance is allowed
*a) Where actual damages arising from breach is not
measurable.
*b) Where monetary compensation is not adequate remedy.
11. Injunction means demanding stay order from Court. It is a
restraining order which prevents a person from breaking a
contract. The court may issue an order prohibiting one
from doing so where one does something which he
promised not to do.
*
12. 4. Suit for Quantum
Merit
The term "Quantum Merit"
is derived from Latin
which means "what one
has earned".
The injured party can file
a suit upon quantum
merit and may claim
payment in proportion to
work done or goods
supplied.
5.Suit for
Rescission
Rescission means a right not to perform
obligation. A right available to an
injured party. Does not require the
intervention of the court. In such a
case the aggrieved party is discharged
from all the obligations under the
contract.
The right to rescission is lost if the
injured party:
a) continues with the
transaction;
b) fails to act or act within a
reasonable time;
