What is a Breach of Contract
What is a Breach of Contract?
Breach of Contract arises when a promisor refuses to perform or by the activities of the promisor the promisor himself or herself becomes disabled to perform the contract. When a contract is broken by one party, the other party or parties involved becomes free from the obligation to perform the contract. Every breach of contract provides right to the suffered person to have compensation provided the breach of contract is regarding some essential part of the contract.
A breach of contract may arise when:
i. The liability before performance of the contract is denied by one party,
ii. When the performance is impossible for the parties involved,
iii. When some part of performance of the contract is denied by any party or
iv. The promisor or the promise fails to perform the contract ,
v. The performance of the contract becomes unauthorized.
Different ways of breach of contract:
Breach of contract arises in two ways:
i. By anticipatory breach: Anticipatory breach of contract occurs when a promisor refuses to perform the promise or by the activities of the promisor the performance of the contract becomes impossible before the time of performance falls due.
Every breach of contract provides a right to the suffered person, i.e., the promise to have compensation or claim damages.
ii. Actual breach of contract: Actual breach of contract arises when the promisor refuse to person the promise on the scheduled date. In further classification actual breach of contract occurs when one of the parties to the contract either fails or refuses to perform the obligation on the date when the performance falls due.
Remedies for breach of contract
The ways and means granted by law for the enforcement of a right are called remedies. When actual breach of contract occurs, the injured party is entitled to the following rights of action:
i. Recession of the contract: When a contract is actually broken on the schedules date the injured party may treat the contract as cancelled or may refuse to further performance and the injured party is free from all obligations under the contract.
ii. Suit for damages: The injured party is entitles to receive compensation for any loss or damage arise to him or her due to the breach of contract and hence, can file a suit for obtaining damages or compensation.