What is Breach of Contract?
A breach of contract refers to the failure of a party to fulfill their obligations as stated in a contractual agreement. It occurs when one party does not perform as promised. This can be either by failing to deliver goods or services or not meeting deadlines. Breach of contract can have legal consequences. The affected party may seek remedies such as damages or specific performance through a court of law. Section 73-75 under the Indian Contract Act 1872 outlines the consequences of a breach of contract.
Types of Breach of Contract
Types of Breach of Contract
A breach of contract occurs when one party fails to fulfill their obligations as specified in the contract. There are two main types of breaches of contract:
Actual Breach: This type of breach occurs when one party completely fails to perform their obligations under the contract. For example, if a party fails to deliver goods or provide services as promised in the contract.
Anticipatory Breach: Anticipatory breach happens when one party indicates, either through words or actions, that they will not be able to fulfill their obligations in the future. It occurs before the scheduled performance date. For instance, if a contractor informs the client in advance that they will not be able to complete the project as agreed.
Learn more about the objectives, importance and features of the Indian Contract Act!
