Breach of Contract by Tayyab Shabbir

8/6/2019 Breach of Contract by Tayyab Shabbir

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BREACH OF CONTRACT

PRESENTED BY: TAYYAB SHABBIR

ID NO: 2162


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BREACH OF CONTRACT

Means one party fails to perform his obligation.

While other party suit to him in Court.

In court to find why one failed to perform his promised.

Example:

A promises to deliver the car on end of July to B. But A

fail to deliver it. B sue him want to deliver the

possession of a car.


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DISCHARGE BY BREACH OF CONTRACT


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ACTUAL BREACH

One party fails to perform a contract.

When performance is due.

Failure party did not give response about fulfillment

of contract.

Example:

Mr. T agrees to deliver 10 bags of rice on 1st May. He

does not deliver on that day.

This is an actual breach of contract.


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ANTICIPATORY BREACH

One party informs that he will not perform his

contractual duties when due.

It has two ways

Express Breach

Implied Breach


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EXPRESS BREACH

Communication between parties.

One party inform that he will not to perform the

contract.

Before the due date of performance.

Example:

X agrees to supply 10 tons of rice to Y on 1st May. On

15thApril X inform to Y, he will not supply the rice.


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IMPLIED CONTRACT

One party act that he will not to perform the

contract.

Other word performance of the contract isimpossible.

Example:

A promise to sell his mobile to B on 1st July andbefore that date he sells the same mobile to C.


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REMEDIES FOR BREACH OF CONTRACT

It occurs when one party breaks the contract.

By refusing to perform his promise.

So the aggrieved party have remedies are

available against the guilty party.


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REMEDIES AVAILABLE

SUIT FOR RESCISSIONSUIT FOR RESCISSION

SUIT FOR DAMAGESSUIT FOR DAMAGES

SUIT FOR QUANTUMMERUIT

SUIT FOR QUANTUMMERUIT

SUIT FOR SPECIFICPERFORMANCE

SUIT FOR SPECIFICPERFORMANCE

SUIT FOR INJUCTIONSUIT FOR INJUCTION


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SUIT FOR RESCISSION

Mean cancellation of a contract.

Aggrieved party sue the guilty party for damages.

Places the parties back in the positions they were in

prior to the creation of the contract.

Example:A contracts to supply cement to B on 15th July. B

agrees to pay the price on receipt of goods. A does not

supply on due date. B is discharge from liability to

pay. B can rescind and claim damages.


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SUIT FOR DAMAGES

The aggrieved party may sue for damages.

Damages are monetary compensation.

Kinds of Damages

Ordinary Damages

Special Damages

Exemplary Damages

Liquidated Damages

Nominal Damages


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ORDINARYDAMAGES

Also known as general damages.

It is based on actual loss.

Different b/w contract price and the actual price.

Example:

A will pay to B 1 Lac for loan on 1st January. A

does not pay on that day. A is liable to pay B also

include the interest on it.


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SPECIAL DAMAGES

It is indirect loss which arise breach of contract.

The parties must be aware of the loss.

Otherwise the guilty party is not responsible for special

damages.

Example:A contract C to buy 1 ton of iron for Rs. 90,000. A also

contract to sell B for Rs110,000. A also inform C about

the purpose of contract. C fails to supply to A. C is

liable for loss of profit which A would earned from B.


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EXEMPLARYDAMAGES

These damages are awarded to punish the guilty party.

Which cause by mental stress and disappointment to

the aggrieved party.

Have no place in law and not recoverable.

Example:OS Bank promised to give loan to W for trip to

California by crediting his account. Bank failed to do so

and Ws cheque was dishonored. The court allowed

damages for the emotional distress.


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LIQUIDATED DAMAGES

Both parties fix the amount of damages.

In case of breach the defaulting party will paid

agreed amount.

The court will recover only fix amount.

Example:A promises to pay B Rs. 50,000 as damaged if he

fails. A fails to fulfilled the contract. B can recover

damages not exceeding Rs. 50,000.


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NOMINAL DAMAGES

Aggrieved party suffers no loss.

So Neither awarded compensate the aggrieved party.

And also not punish the guilty party.

Example:

A promises to sell cement to B for Rs.200 per bag. A

does not supply at the time of breach, the market rate

of cement is the same. B is entitled to nominal

damages.


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SUIT UPON QUANTUM MERUIT

One party has done some work and other party

cancel the contract.

One party can claim for the work has been done.

Example:

Mr. R contract a build 3 storey house for Mr. F. When

one storey is complete, Mr.R stops Mr. F from work.Mr. F can get compensation for work done.


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SUIT FOR SPECIFIC PERFORMANCE

Means the actual carrying out of the contract.

Court order to guilty party to fulfill the contract.

Example:

A agrees to sell B his painting but commits

breach. B cannot sue for damages but A shall beorder to make specific performance to B.


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SUIT FOR INJUNCTION

It is a stay order to make a person perform his promise.

It is a mode of securing specific performance.

It is preventive relief for aggrieved party.

Example:

W agrees to Y perform drama play at Z theatre.Afterward W contract to another U. Held on courtmade a decision to be perform only Y drama play at Ztheatre.


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Documents

Breach of Contract by Tayyab Shabbir