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Breach of contract

A breach of contract occurs when one party fails to fulfill its obligations under a legally binding agreement, which can be classified as either an actual or anticipatory breach. Remedies for breach include damages, rescission of the contract, restitution, specific performance, and injunctions, depending on the nature of the breach and applicable laws. Each remedy aims to address the harm caused by the breach and restore the injured party to their prior position.

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1 views

Breach of contract

A breach of contract occurs when one party fails to fulfill its obligations under a legally binding agreement, which can be classified as either an actual or anticipatory breach. Remedies for breach include damages, rescission of the contract, restitution, specific performance, and injunctions, depending on the nature of the breach and applicable laws. Each remedy aims to address the harm caused by the breach and restore the injured party to their prior position.

Uploaded by

Varun D
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BREACH OF

CONTRACT AND IT’S


REMEDIES
Contract
A contract is a legally binding agreement between two or more parties that creates
obligations to do or not do certain things. Every contract has multiple elements
such as -
Offer
Acceptance
Consideration
Legal Capacity
Etc
Breach Of Contract
A breach of contract occurs when one party fails to perform its obligations under the terms of a
contract without a legal excuse. In other words, it is a violation of the agreed-upon terms, whether
those terms are explicitly stated in a written contract or implied by law in the case of oral
agreements. When there is a breach in the contract the party who is facing a loss will be provided
with remedies.
Types Of Breach
1- Actual Breach - An actual breach of contract occurs when one party to a contract
fails to perform its obligations as specified in the agreement.

2- Anticipatory Breach - An anticipatory breach of contract occurs when one party


to a contract indicates, either through words or actions, that it does not intend to
fulfill its contractual obligations before the actual time for performance arrives.
Remedies to Contract
When a breach of contract occurs, the non-breaching party may
pursue various remedies to address the harm or losses caused by
the breach. The specific remedies available can depend on the
nature of the breach and the terms of the contract and the laws
that apply to it as laws vary globally.
1-Damages
Damages refer to the monetary compensation awarded to a party who has suffered a
loss or harm as a result of the actions of another party. The purpose of awarding
damages is to place the injured party in the position they would have been in had the
breach of contract had not occurred.
The types of damages are as follows-
Ordinary
Special
Liquidated
Non-Monetary
2-Recission of Contract

Recission of a contract refers to the cancellation or annulment of a contract,


returning the parties involved to their pre-contractual positions as if the
contract never existed. Rescission essentially voids the contract and releases
both parties from their obligations under it.
3-Restitution

Restitution, in the legal context, refers to the


restoration or compensation for a loss or
injury. It is a remedy that aims to restore a
party to the position they were in before the
breach occurred.
4- Specific Performance

Specific performance is a legal remedy that involves a court order requiring a party to
fulfill its contractual obligations as specified in the agreement. Instead of awarding
monetary damages for a breach of contract, specific performance compels the
breaching party to perform the exact terms of the contract.
5-Injunction
An injunction is a legal remedy issued by a court that orders a party to either do a
specific act or to refrain from doing a particular act. Injunctions are equitable remedies
and are typically sought when monetary damages are insufficient to remedy a legal
wrong or when there is a need to prevent irreparable harm.
THANK YOU

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