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Mahalchand M. Kothari As" A Breach of Contract Occurs When A Party Thereto Renounces His

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1. Whether there was a breach of Contract by either of the Parties?

1) The term "contract" is defined in Section 2{h) of the Indian Contract Act, 1872, as follows:
"An agreement enforceable by law is a contract."^ Thus for the formation of a contract there
must be—(1) an agreement, and (2) the agreement should be enforceable by law(C1) and
supreme court has defined breach of contract in the case of U.P. State Sugar Corpn v
Mahalchand M. Kothari as" A breach of contract occurs when a party thereto renounces his
ability under it, or by his own act makes it impossible that he should perform his obligations
under it or totally or partially fails to perform such obligations."(C2)

Petitioner side

1.1 Breach of contract by Richard.


2) As mentioned in the facts that Richard signed a contract with Modi Group. According to the
contract, Richard was to be paid a total amount 3.5 Million US Dollars, for a total of 10
performances in different Countries. After success of Finland event the next lined-up event
was in Clerden. The team left clerden after performing without conveying the same to
organizers but the organizers without having the knowledge of the same started preparing
for the next lined up event in Sweden. Later on, the organizers came to know that the artist
had left and had no intention to continue the performances with the organizers.(C3)
1.1.1 The obligation of parties to perform (section 37).
2)As above mentioned The obligations in a contract are those duties by which the
parties to the contract have to abide by. In a contract, the parties to the contract usually
exchange something of value in the eyes of the law. The thing which is decided to
exchange can be the product, services, money, etc.

1.1.2 There was a fundamental breach.

1.2 No fault on the side of Modi group.

1.2.1 Failure to perform on fixed time (section 55).

1.2.2 Effect of refusal of party to perform (section 39)

1.3 Damages by breach of contract.

1.3.1 Entitled to compensation under( Section 73)


1.3.2 Breach of resembling contract under section (73)
1.3.3 Special damages and aggravated damages
1.3.4 Unliquidated damages
Respondent side

1.1 Breach of contract by Modi group


1.1.1 The obligation of parties to perform (section 37)
1.1.2 Material violation
1.1.3 Fundamental breach
1.2 No fault on part of Richard
1.2.1 Effect of refusal of party to perform (section 39)
1.2.2 Failure to perform on fixed time (section 55)
1.2.3 Reciprocal promise (section 54)
1.3 doctrine of frustration(section 56)
1.3.1 Effect of neglect (section 67)
1.4 Damages by breach of contract.
1.4.1 Entitled to compensation under (Section 73)
1.4.2 Breach of resembling contract under( section 73)
1.4.3 General damages

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