Breach of contract

1. Legal Environment for Business in Nepal
5 December 2016
Saroj Shrestha 1

2. ‘To breach means’ to break a rule or an
agreement’. ‘Breach of contract’ means ‘failing to
do something as accordance to the contract’
Breach of Contract means non performance of
contract impliedly or expressly at the time of
performance or even before that: which is one of
the modes of termination of contract. If a contract
is broken by one party the other party becomes
aggrieved.
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3.  Section 82 (1) of Contract Act, 2056 contains that,
“the contact is deemed to have been breached
when : (i) any party to a contract does not meet
liability under the contract, or gives a notice to the
other party that he/she will not perform the work to
be performed under the contract, or in case
his/her action or conduct shows that he/she is
incapable of performing the work under the
contract, he shall be deemed to have breached
the contract.
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4. A breach of Contract:
 May be expressed or implied
 May be caused by any party to a contract,
 May be caused or anticipatory, by nature,
 May be either against to terms of contract or law
of contract
 May cause to terminate the contract
 May be either by intention or incapacity of the
parties.
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5. 1. Actual breach: It is known as a fundamental
breach. When a party to a contract does not
perform his liability under a contract at the time
when it is due, it is an actual breach of the
contract. (Sec. 83 (1) of CA, 2056)
2. Anticipatory breach: When a party to a
contract has refused to perform the contract
before the due date, it is an anticipatory breach
which may cause the Termination of the Contract.
Sometimes, any party’s conduct/action shows his
incapacity to perform the contract.
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6.  The remedies which are enforced by court of law
are as follows”
 Damages
 Specific Performance
 Injunction
(Sec. 82 to 87 of Contract Act, 2056)
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7. 7Saroj Shrestha
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