lect iv and v_ breach of contract

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THE INDIAN CONTRACT ACT

1971

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Breach of ContractPerformanceParties meet the contractual obligations and

promises madeMust be complete and exact to discharge

the contract

Failure to perform is a breach of contract

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Discharge by Means Other Than Performance

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Breach of ContractRefusal to carry out the contract promiseMay allow

○ Discharge of the contract○ Damages○ Court order requiring performance

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Express Repudiation Stated refusal to perform

○ Conduct○ Written or verbal communication

Anticipatory breach○ Repudiation before time fixed for performance○ Allows the injured party to:

Discharge and sue for damages Continue with contract and sue for damages at the

time fixed for performance

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Conti…Doctrine of Substantial Performance

○ Repudiation after the performance is largely fulfilled will not allow discharge, only damages

Warranties○ Minor or subsidiary promises allow damages

only and not discharge of the contractConditions

○ Major or essential terms that go to the root of the contract allow discharge, if done promptly and no further benefit taken, and damages

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Implied RepudiationAnticipatory breach: repudiation is

suggested by the conduct of the party or from statements made before time of performance

Fundamental BreachBreach goes to the root of the contract

and allows discharge

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Remedies for Breach