B o c


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B o c

  1. 1. Breach of Contract <ul><li>“ A Breach of Contract (BoC) occurs if any party refuses or fails to perform his part of the contract or by his act makes it impossible to perform his obligation under the contract.” </li></ul><ul><li>A BoC may arise in two ways: </li></ul><ul><li>1. Anticipatory Breach, and </li></ul><ul><li>2. Actual Breach. </li></ul>
  2. 2. “ 1. Anticipatory Breach ” <ul><li>It occurs when the party declares his intention of not performing the contract before the performance is due. </li></ul><ul><li>Modes of declaring an intention not performing the contract: </li></ul><ul><li>(a) When a party to contract has refused to perform his promise. </li></ul><ul><li>(b) When a party to contract has disabled himself from performing his promise. </li></ul>
  3. 3. “ 2. Actual Breach ” <ul><li>(a) On due date of performance: If any party refuses or fails to perform in his part at the time fixed. </li></ul><ul><li>(b) During the course of performance: If any of the party perform a part of the contract and then refuses or fails to perform the remaining part of the contract. </li></ul>
  4. 4. “ Remedies for BoC ” <ul><li>Remedy is the course of action available to the aggrieved party, i.e., the party not at the default, for the enforcement of a right under a contract. </li></ul>
  5. 5. <ul><li>Various Remedies: </li></ul><ul><li>(1) Rescission of contract : </li></ul><ul><li>A right not to perform obligation. </li></ul><ul><li>(2) Suit for damages : </li></ul><ul><li>Monetary compensation allowed for loss suffered by the aggrieved party due to B o C. </li></ul><ul><li>(a) Ordinary damages: Which naturally arise in the usual course of things from such breach. </li></ul>
  6. 6. <ul><li>(i) The aggrieved party must suffer by B o C. </li></ul><ul><li>(ii) The damages must be direct consequence of the B o C and not the indirect consequence. </li></ul><ul><li>(b) Special damages: These are claimed in case of loss of profit, etc., Which may reasonably be supposed to have been in the contemplation of both parties as the probable result of B o C. </li></ul>
  7. 7. <ul><li>(c) Exemplary: Damages are those which are in the nature of punishment. </li></ul><ul><li>(i) A breach of promise to marry. </li></ul><ul><li>(ii) Wrongful dishonour of a cheque by a banker. </li></ul><ul><li>(d) Nominal: Which are awarded where there is only a technical violation of a legal right but the aggrieved party has not in fact suffered any loss because of B o C. </li></ul>
  8. 8. <ul><li>(e) Damages for inconvenience & discomfort: If a party has suffered physical inconvenience & discomfort due to B o C, that party can recover the damages for such inconvenience & discomfort. </li></ul><ul><li>(3) Suit for specific performance: Demanding the court’s direction to the defaulting party to carry out the promise acc. to the term of contract. </li></ul><ul><li>(4) Suit for injunction(court’s stay order). </li></ul><ul><li>(5) Suit for Quantum Meruit. </li></ul>