BREACH OF CONTRACT AND REMEDIES FOR IT Flashcards
- Term ‘Agreement’ is defined in which section and as ?
Under Section 2(e) and as ‘ reciprocal promises’.
- What is Breach of Contract ?
When the party to contract fails to carry out agreed obligation or his act makes it impossible.
- What are two ways of breach of Contract?
a) Anticipatory Breach
b) Actual Breach
- Which section deals with Aniticipatory Breach of Contract?
Section 39: Effect of refusal of party to perform promise wholly.—When a party to a contract has refused
to perform, or disabled himself from performing, his promise in its entirety, the promisee may put an end
to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance.
- When a party to contract fails to perform his duty then the promisee has which two option?
a) Rescind the contract and sue for damages for breach of contract without waiting untill the due date of performance.
b) May not rescind the contract but treat the contract as operative and wait for the time of performance and then hold the other party liable for the consequences of non-performance.
- What would happen if the promisee don’t rescind the contract and that contract reamain alive for the benefit of both parties but during the intervining period ( due date of breach and due date of performance) any event happens for the benefit of the promisor? give an example
The promisee would loose his right to sue for damages. War.
- Give the name of the case law?
Avery v. Bowden
- What is Anticipatory Breach of Contract?
Under this the aggrieved party may claim damages either at the time when such a breach is committed or wait till the time when the performance becomes due and claim damages if promise still unperformed.
- What is Actual Breach of Contract ?
What are two ways actual breach can be found?
a) Breach at the time when the performance of contract is due
b) Breach of Contract during the performance of the contract.
- What is Actual Breach of Contract at the time when performance is due?
If a party to contract fails or refuses to perform his part of the contract at the time fixed for the performance of that contract, he will be liable for its breach.
what is the essence of this type of actual breach of contract?
That the time was considered by the party as the essense of the contract or not.
- In respect to ‘Actual Breach of Contract at the time when performance is due’ which section states this?
Section 55: Effect of failure to perform at fixed time, in contract in which time is essential.—When a
party to a contract promises to do a certain thing at or before a specified time, or certain things at or
before specified times, and fails to do any such thing at or before the specified time, the contract, or so
much of it as has not been performed, becomes voidable at the option of the promisee, if the intention of
the parties was that time should be of the essence of the contract.
- What will happen If time wasn’t the intenion of the parties to be an essence of the contract?
The contract will not become voidable but the promisee will be entitled to compensation from the promisor for the loss suffered by the failure.
- What is Actual Breach of Contract during the performance of the contract?
It happens when during the performance of the contract one party fails or refuses to perform his obligatiion under the contract.
- What are remedies for the breach of Conract ?
1) Rescission of the contract
b) Suit for Damage
c) Suit for specific performance
d) Suit for Injunction
e) Suit upon quantum meruit
