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Discharge of Contract
Discharge of Contract
Discharge of Contract
PERFORMANCE OF CONTRACT
• Each party to the contract is bound to perform the
promise made by him.
• After the parties have made due performance of the
contract, their liability under the contract comes to an
end.
1. It must be unconditional
2. It must be made at proper time and place
3. A person to whom the tender is made must be
given opportunity of inspection of goods or
articles
4. The tender must be whole and not of the part
5. The tender must be in proper form – tender of
money in current coins
Breach of Contract
1.Anticipatory Breach:
• “ An anticipatory breach occurs when a party
demonstrates his intention to break a contract”.
• Vocal or written confirmation is not required
• Failure to perform an obligation in a timely matter can
result in a breach
• By declaring an anticipatory breach, the counterparty
may begin legal action immediately rather than waiting
until a contract's terms are actually broken.
• Eg.: A enters into a contract with B on June 01, 2018. As
per the contract, A agrees to sell his guitar to B on June
10, 2018, for an amount of Rs 5,000. However, he sells
this guitar to C on June 07, 2018. Hence, it is an
anticipatory breach of contract due to A’s conduct.
2.Actual breach:
• “ Actual breach of contract occurs when during
the performance of the contract or at the time of
performance, one party fails or refuses to
perform his promise under the contract”
• Example: A Agrees to deliver 10 kg of Rice to B
on 1st November, A fails to deliver the rice to B
on November 1st This is actual breach of
contract by A.
Quantum Meruit
Specific Performance
• Specific performance means an order of the court
directing the party who commits breach of contract to do
what he has promised to do.
• Generally specific performance will not be ordered in the
following cases:
• When monitory compensation is an adequate
remedy.
• Contracts of personal nature
• When one of the parties is minor.
• When the contract is uncertain an inequitable to
party.
Injunction
Damages
Grounds of Frustration:
i) Destruction of subject-matter
ii) Change in circumstance
iii) Non-occurrence of contemplated event
iv) Government or legislative intervention
v) Intervention of war