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12/5/2016 1Dr Siddharth Shimpi
Breach of Contract
Performance
 Parties meet the contractual obligations and
promises made
 Must be complete and exact to discharge
the contract
Failure to perform is a breach of contract
12/5/2016 2Dr Siddharth Shimpi
12/5/2016 3Dr Siddharth Shimpi
Discharge by Means Other
Than Performance
12/5/2016 4Dr Siddharth Shimpi
Breach of Contract
 Refusal to carry out the contract promise
 May allow
○ Discharge of the contract
○ Damages
○ Court order requiring performance
12/5/2016 5Dr Siddharth Shimpi
Express Repudiation
 Stated refusal to perform
○ Conduct
○ Written or verbal communication
 Anticipatory breach
○ Repudiation before time fixed for performance
○ Allows the injured party to:
 Discharge and sue for damages
 Continue with contract and sue for damages at the
time fixed for performance
12/5/2016 6Dr Siddharth Shimpi
Conti…
 Doctrine of Substantial Performance
○ Repudiation after the performance is largely
fulfilled will not allow discharge, only damages
 Warranties
○ Minor or subsidiary promises allow damages
only and not discharge of the contract
 Conditions
○ Major or essential terms that go to the root of
the contract allow discharge, if done promptly
and no further benefit taken, and damages
12/5/2016 7Dr Siddharth Shimpi
 Implied Repudiation
 Anticipatory breach: repudiation is
suggested by the conduct of the party or
from statements made before time of
performance
 Fundamental Breach
 Breach goes to the root of the contract
and allows discharge
12/5/2016 8Dr Siddharth Shimpi
Remedies for Breach
12/5/2016 9Dr Siddharth Shimpi

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Lect iv and v_ breach of contract

  • 2. Breach of Contract Performance  Parties meet the contractual obligations and promises made  Must be complete and exact to discharge the contract Failure to perform is a breach of contract 12/5/2016 2Dr Siddharth Shimpi
  • 4. Discharge by Means Other Than Performance 12/5/2016 4Dr Siddharth Shimpi
  • 5. Breach of Contract  Refusal to carry out the contract promise  May allow ○ Discharge of the contract ○ Damages ○ Court order requiring performance 12/5/2016 5Dr Siddharth Shimpi
  • 6. Express Repudiation  Stated refusal to perform ○ Conduct ○ Written or verbal communication  Anticipatory breach ○ Repudiation before time fixed for performance ○ Allows the injured party to:  Discharge and sue for damages  Continue with contract and sue for damages at the time fixed for performance 12/5/2016 6Dr Siddharth Shimpi
  • 7. Conti…  Doctrine of Substantial Performance ○ Repudiation after the performance is largely fulfilled will not allow discharge, only damages  Warranties ○ Minor or subsidiary promises allow damages only and not discharge of the contract  Conditions ○ Major or essential terms that go to the root of the contract allow discharge, if done promptly and no further benefit taken, and damages 12/5/2016 7Dr Siddharth Shimpi
  • 8.  Implied Repudiation  Anticipatory breach: repudiation is suggested by the conduct of the party or from statements made before time of performance  Fundamental Breach  Breach goes to the root of the contract and allows discharge 12/5/2016 8Dr Siddharth Shimpi
  • 9. Remedies for Breach 12/5/2016 9Dr Siddharth Shimpi