Breach Of Contract
A breach of contract is a failure by one of the parties to fulfil their obligations as defined in the contract. This can have serious repercussions, and section 73-75 of the Indian Contract Act 1872 outlines the consequences. Breach of contract can be either actual or anticipatory.
In the case of a breach, the affected party can claim the damage from the court by asking the other party to perform as promised. It is important to be aware of the various types of breach of contract, remedies for breach of contract and the difference between liquidated damage and penalty. Anticipatory breach of contract refers to the failure by one of the parties before the time fixed for performance has arrived, while an actual breach of contract occurs when one of the parties refuses to perform their promise on the due date.
Remedies for breach of contract include
- Suit for damages,
- A case for specific performance,
- Eliminating the contract,
- Stopping the other party from doing something, and
- Claim upon quantum meruit (compensation for work done before the breach).
- Suit for Damages
The party can ask for compensation for loss or damage caused by the breach of contract. Remedy by way of damages is the most common remedy for the injured party. Damages can be ordinary, special, exemplary, nominal, damage caused by delay, and pre-fixed damages. - Suit for Specific Performances
When compensation for the damage is not enough to cover the loss due to a breach of contract, we can approach the court and ask the court to force them to perform as promised. - Eliminate the Contract
When a contract is breached, the promisee can stop doing the performance they are obligated to and claim compensation from the promiser. - Rescission of Contract
The promise restrains the party from doing something until the case is dismissed. - Suit for Quantum Meruit
Suing for the amount of money that must be paid to the injured party for their work until the breach of contract happened. - Liquidated Damage and PenaltyLiquidated Damage: A reasonable estimate of likely loss in case of a breach mentioned in the contract before the breach.
Penalty: An arbitrarily fixed amount of money without estimating the likely loss in case of a breach.
A breach of contract can be a complex and stressful experience for any business or individual. At Icon Legal Services, we understand the impact a breach of contract can have on your finances, reputation, and overall well-being. Contact us today to learn more about how we can help you navigate the complexities of a breach of contract case and achieve the best possible outcome for your business or personal situation.