1) Breach of Contract :


        Breach of contract means failure to perform the contractual obligation by either of the parties without any lawful excuse. It is a ground for discharge of the contract.


2) Kinds of Breach of Contract :


        There are two kinds of breach of contract which are as follows -

     (a) Actual Breach of Contract -

     (b) Anticipatory breach of contract


  (a) Actual Breach of Contract -


           If one of the parties to a contract refuses to perform his part of the contract during the performance, the other party is discharged from any further performance of his obligations under the contract and may also bring an action for breach.

         Actual breach of contract occurs at the time when the performance is due, one party fails or refuse to perform his obligation under the contract.

Example - 'A' agrees to deliver to 'B' 5 bags of sugar on 1st January. He does not deliver the same on 1st January. There is a breach of contract.

          Actual breach of contract also occurs when during the performance of the contract, one party fails or refuses to perform his obligation under the contract. This refusal to perform may be a) express (i.e., By word or act) or b) implied (i.e., By impossibility created by the act of a party to the contract).

         In both cases (A) and (B) the party not in breach can treat the contract as no longer binding on him and sue for breach of contract.


(b) Anticipatory breach of contract -


          Anticipatory breach of contract means the repudiation of a contract by one party to it before the due date of its performance has arrived.

       Section 39 of the Indian Contract Act 1872 which contains law relating to anticipatory breach of contract reads as under -

      " when a party to a contract has refused to perform. Or disabled himself on performing, his promise in its entirety,  the promise may put an end to the contract, unless he has signified, by words or conduct, his consequence in its continuance "


See also...

Who is Minor? Effects of Minor's Agreement.

Capacity to Contract

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