This document discusses breach of contract and remedies for breach of contract. [1] A breach of contract occurs when one party fails to meet their obligations as outlined in a binding agreement. [2] There are several remedies available to the wronged party, including rescinding the contract, suing for damages, seeking specific performance where the breaching party fulfills their obligations, an injunction to stop a prohibited act, or quantum meruit to receive reasonable payment for work already performed. [3] Successfully claiming breach of contract requires proving the breach occurred.
This document discusses breach of contract and remedies for breach of contract. [1] A breach of contract occurs when one party fails to meet their obligations as outlined in a binding agreement. [2] There are several remedies available to the wronged party, including rescinding the contract, suing for damages, seeking specific performance where the breaching party fulfills their obligations, an injunction to stop a prohibited act, or quantum meruit to receive reasonable payment for work already performed. [3] Successfully claiming breach of contract requires proving the breach occurred.
This document discusses breach of contract and remedies for breach of contract. [1] A breach of contract occurs when one party fails to meet their obligations as outlined in a binding agreement. [2] There are several remedies available to the wronged party, including rescinding the contract, suing for damages, seeking specific performance where the breaching party fulfills their obligations, an injunction to stop a prohibited act, or quantum meruit to receive reasonable payment for work already performed. [3] Successfully claiming breach of contract requires proving the breach occurred.
This document discusses breach of contract and remedies for breach of contract. [1] A breach of contract occurs when one party fails to meet their obligations as outlined in a binding agreement. [2] There are several remedies available to the wronged party, including rescinding the contract, suing for damages, seeking specific performance where the breaching party fulfills their obligations, an injunction to stop a prohibited act, or quantum meruit to receive reasonable payment for work already performed. [3] Successfully claiming breach of contract requires proving the breach occurred.
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CASE ANALYSIS
Breach of Contract
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.
A contract is binding and will hold weight if taken to court. To successfully claim a breach of contract, it is imperative to be able to prove that the breach occurred.
KEY TAKEAWAYS
A breach of contract occurs when one party in a binding agreement fails to
deliver according to the terms of the agreement. A breach of contract can happen in both a written and an oral contract. The parties involved in a breach of contract may resolve the issue among themselves, or in a court of law. There are different types of contract breaches, including a minor or material breach and an actual or anticipatory breach.
Understanding a Breach of Contract
A breach of contract is when one party breaks the terms of an agreement between two or more parties. This includes when an obligation that is stated in the contract is not completed on time —you are late with a rent payment, or when it is not fulfilled at all—a tenant vacates their apartment owing six-months' back rent.
Sometimes the process for dealing with a breach of contract is written in the original contract.
For example, a contract may state that in the event of late payment, the offender must pay a $25 fee along with the missed payment. If the consequences for a specific violation are not included in the contract, then the parties involved may settle the situation among themselves, which could lead to a new contract, adjudication, or another type of resolution. CASE ANALYSIS
Remedies for Breach of Contract
When a promise or agreement is broken by any of the parties we call it a breach of contract. So when either of the parties does not keep their end of the agreement or does not fulfil their obligation as per the terms of the contract, it is a breach of contract. There are a few remedies for breach of contract available to the wronged party. Let us take a look.
1] 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.
As per section 65 of the Indian Contract Act, the party that rescinds the contract must restore any benefits he got under the said agreement. And section 75 states that the party that rescinds the contract is entitled to receive damages and/or compensation for such a recession.
2] Sue for Damages
Section 73 clearly states that the party who has suffered, since the other party has broken promises, can claim compensation for loss or damages caused to them in the normal course of business.
Such damages will not be payable if the loss is abnormal in nature, i.e. not in the ordinary course of business. There are two types of damages according to the Act,
Liquidated Damages: Sometimes the parties to a contract will agree to the amount payable in case of a breach. This is known as liquidated damages.
Unliquidated Damages: Here the amount payable due to the breach of contract is assessed by the courts or any appropriate authorities.
3] Sue for Specific Performance
This means the party in breach will actually have to carry out his duties according to the contract. In certain cases, the courts may insist that the party carry out the agreement.
So if any of the parties fails to perform the contract, the court may order them to do so. This is a decree of specific performance and is granted instead of damages.
For example, A decided to buy a parcel of land from B. B then refuses to sell. The courts can order B to perform his duties under the contract and sell the land to A. CASE ANALYSIS 4] Injunction An injunction is basically like a decree for specific performance but for a negative contract. 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. In a prohibitory injunction, the court stops the commission of an act and in a mandatory injunction, it will stop the continuance of an act that is unlawful.
5] Quantum Meruit Quantum meruit literally translates to “as much is 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. This could be the remuneration of the services he has provided or the value of the work he has already done. CASE ANALYSIS
Submitted To :- Submitted By :- ASST. PROF. Shubhangi gupta Kushagra Bhargava Roll NO. 5
