05/03/2023 Dr Siddharth Shimpi 1

THE INDIAN CONTRACT ACT

1971

05/03/2023 Dr Siddharth Shimpi 2

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

05/03/2023 Dr Siddharth Shimpi 3

05/03/2023 Dr Siddharth Shimpi 4

Discharge by Means Other Than Performance

05/03/2023 Dr Siddharth Shimpi 5

Breach of ContractRefusal to carry out the contract promiseMay allow

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

05/03/2023 Dr Siddharth Shimpi 6

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

05/03/2023 Dr Siddharth Shimpi 7

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

05/03/2023 Dr Siddharth Shimpi 8

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

05/03/2023 Dr Siddharth Shimpi 9

Remedies for Breach