2. Introduction
A breach of contract occurs when the
promise of the contract is not kept,
because one party has failed to fulfill their
agreed upon obligations, according to the
terms of the contract. Breaching can occur
when one party fails to deliver in the
appropriate time frame, does not meet the
terms of the agreement, or fails perform at
all.
3.
4. Types of Breach of Contract
Breach of
Contract
Actual
Breach
Anticipatory
Breach
5. Anticipatory Breach
As the name suggests, an anticipatory breach is a breach of
contract before the time of performance. So, if
a promisor denies to perform his promise and signifies his
unwillingness before the time for performance, then it is an
anticipatory breach of contract.
Expressly by
words spoken
or written Implying it by his
conduct
6. Expressly by words spoken or
written
When the party to a contract has refused to perform his
promise
For example – X, a farmer agrees to sell to Y his entire
crop of 10 tones of wheat @ 8000 per tone to be
delivered on 20 October, X informs Y that he is not to
supply the goods. X has committed anticipatory breach
of contract by express repudiation
7. Implying it by his conduct
When a party to a contract has disable himself form
performing his promise in its entirety
For example - X, a farmer agrees to sell to Y his entire
crop of 10 tones of wheat @ 8000 per tone to be
delivered on 20 October. X sold his entire crop to Z @
10000 per tone. X has committed anticipatory breach of
contract by implied repudiation
8. Actual Breach of Contract
While an anticipatory breach is before the time of
performance, an actual breach of contract is on the
scheduled time of performance of the contract. An actual
breach of contract can be committed either:
During the
Performance of
the Contract On the due date of
performance
9. During the course of performance
If any party has performed a part of the contract and then refuses
or fails to perform the remaining part of the contract, it is called an
actual breach of contract during the course of performance
For example - X, a farmer agrees to sell to Y 10 tones of wheat @
8000 per tone to be delivered in two equal installments on 20
October and 21 October, X delivered 5 tones and refused to deliver
remaining 5 tones. It is an actual breach of contract during the
course of performance
10. On due date of performance
If any party to contract refuses or fails to perform his part
of the contract at the time fixed for performance, it is
called an actual breach on due date of performance
For example - X, a farmer agrees to sell to Y 10 tones of
wheat @ 8000 per tone to be delivered in two equal
installments on 20 October and 21 October, On 20
October, X refuse to deliver the goods. It is an actual
breach of contract on due date of performance