2. DISCHARGE OF CONTRACT
When obligations created by a contract comes to
an end, contract said to be discharged or
terminated.
3. A contract may be discharged
in any of the following ways...
●
●
By Performance
By mutual agreement
● By Impossibility of Performance
● By Breach Of Contract
●
● By Operation of Law
By laps of time
4. BREACH OF CONTRACT
“ Breach of contract means failure or refusal by
the parties to perform their respective promises”
5. Types of Breach of
ContractBreach of contract may
arise;
1.Anticipatory Breach
2.Actual breach
6. “An anticipatory breach occurs when a
party demonstrates his intention to break
a contract”
Vocal or written confirmation is not required,
Failure to perform an obligation in a timely matter can
result in a breach.
By declaring an anticipatory breach, the counterparty
may begin legal action immediately rather than
waiting until a contract's terms are actually broken.
Ie: Rajesh Agrees To Marry Shantha, Before the date of Marriage Rajesh
Heard that Shantha Going to Marry Sudharman.
1.AnticipatoryBreach
7. “ Actual breach of contract occurs when during
the performance of the contract or at the time of
performance, one party fails or refuses to
perform his promise under the contract”
Example: Ashitha Agrees to deliver 10 kg of Rice to
Mansoor on 1st November, Ashitha fails to deliver the
rice to Mansoor on November 1st This is actual breach
of contract by Ashitha.
2.Actualbreach
8. When there is a breach of contract, aggrieved
party can take the following Remedies;
Recession of the Contract
Quantum Meruit
Specific Performance
Injuction
Damages
Remedies For Breach Of Contract
9. When there is a breach of contract by one party
the other party can rescind the contract and he
is free from all obligations of under the contract.
Example: A agrees to deliver 10kg rice to B on 1st oct. B
promises to pay the price on the same day. A does not
deliver the rice.B need not pay the price
RecessionoftheContract
10. Quantum meruit means as much as earned. It is only
an obligation created by law. It is not a contractual
remedy, such obligation arises and a person claim
payment in the following cases;
● When work has been done or goods supplied without any
contract.
When the original contract has been terminated breach of
contract by one party
When work has been made and accepted under a void
agreement
Example: C was appointed as MD of a company.
The contract was void because the directors who
appointed C were not qualified. C sued for
Remuneration.Held that C is entitled to
remuneration.
QuantumMeruit
11. SpecificPerformance
Specific performance means an order of the
court directing the party who commits breach of
contract to do what he has promised to do.
Generally specific performance will not be
ordered in the following cases;
When monitory compensation is an adequate remedy.
Contracts of personal nature
When one of the parties is minor.
When the contract is uncertain an inequitable to party.
12. Injunction is an order of the court directing the
party who commits breach of contract either to
do or not to do something. It is usually given in
cases of anticipatory breach of contract.
Example : Mammootty agreed to act only for shaji
kailas for one year. During the year he contracted to
act for Vinayan. In a suit filed by Shaji kailas,
Mammootty was prohibited by an injunction from
acting for Vinayan.
Injuction
13. The amount of compensation awarded to the
aggrieved party for breach of contract.
Damages allowed are the following types;
Compensatory/ordinary damages
Nominal damages
Special damages
Exemplary vindictive of punitive damages
Damages