1. HARYANA SCHOOL OF BUSINESS
PRESENTED BY:-
ARPIT
MBA (GENERAL A)
200101010013
Breach of contract
GURU JAMBHESHWAR UNIVERSITY OF SCIENCE &
TECHNOLOGY
SESSION :2020-2022
2. Flow Of Presentation
•Breach of contract meaning
•Case Law
•Type of Breach
•Remedies available to aggrieved party
3. Meaning
•A breach of contract is a violation of any of the agreed-
upon terms and conditions of a binding contract. The
breach could be anything from a late payment to a more
serious violation such as the failure to deliver a
promised asset.
•To successfully claim a breach of contract, it is
imperative to be able to prove that the breach occurred.
4. Case Law-Hadley v Baxendale
Facts:- Hadley contracted with Baxendale to
Deliver certain item to somebody but Baxendale
failed to deliver that in time due to which Hadley
claimed the loss of profits as the damages .
Issue:- will the loss of profit be awarded to Hadley?
5. Decision- a) Damages for all those loses can be
claimed which can be foreseen by the contract in
parties.
B) But damages for all those loses cannot be
claimed which can’t be foreseen usually in the
course of business.
C) hence, Hadley can’t be awarded damages for
loss of profits of which Baxendale was not aware
of.
6. Type of Breach
1) Actual Breach
•On Due date Of performance
•During Performance
2) Anticipatory Breach
7. Remedies available to aggrieved party
•Recession of the contract
•Damages
•Quantum Meruit
•Specific performance
•Injuction
8. Recession of contract
When one of the parties to a contract does not
fulfil his obligations, then the other party can
rescind the contract and refuse the performance
of his obligations.
9. Damages
The amount of monetary compensation awarded
to the aggrieved party for breach of contract.
Types of Damages :
1)Ordinary Damages
2) Nominal Damages
3) Special Damages
4)Vindictive Damages
10. Ordinary Damages
•Ordinary damages are damages which fairly
and reasonably be considered as arising
naturally and directly in the usual course of
things from the breach of contract itself.
Damages, that are the direct or the proximate
consequences of the breach of contract, can be
described as ordinary damages.
11. Nominal Damages
A trivial sum of money awarded to a
plaintiff whose legal right has been technically
violated but who has not established that they are
entitled to compensatory damages because there
was no accompanying loss or harm.
12. Special Damages
• Special damages (also called “consequential damages”) cover any loss incurred
by the breach of contract because of special circumstances or conditions that
are not ordinarily predictable.
13. Vindictive Damages
•These damages are awarded against the party
who has committed a breach of the contract
with the object of punishing the erring as
defaulting party and to compensate the aggrieved
party. Generally, these damages are awarded in
case of action on lost or breach of promise.
14. Quantum Meruit
•Quantum meruit literally translates to “as much
as earned”. At times when one party of the
contract is prevented from finishing his
performance of the contract by the other party, he
can claim quantum meruit.
•So he must be paid a reasonable remuneration for
the part of the contract he has already
performed.
15. Specific performance
•Specific performance means fulfilling a promise
made under a contract as agreed. A suit for
specific performance can be filed by any party, in
a court of competent jurisdiction, who has
suffered loss due to non-performance of contract
on part of the other party to the contract.
16. Injuction
•An injunction is a court order restraining a
person from doing a particular act. So a court
may grant an injunction to stop a party of a
contract from doing something he promised not
to do.