DISCHARGE BY

BREACH-
ANTICIPATORY
BREACH

Law Of Contract

Mary Ros K R
 DISCHARGE OF CONTRACT .

Discharge of contract means termination of contractual relation

between the parties to a contract.

A CONTRACT MAY BE DISCHARGED :

1. By Breach of contract
2. By Impossibility of performance
3. By Agreement and Novation
4. By Performance
 Discharge By Breach Of Contract
: means failure to perform contractual obligation by either of the
parties without any lawful excuse, the contract discharged because
it is a ground for discharge of a contract.

2 Kinds Of Breach Of Contract :

1. Actual Breach : Actual breach of contract refers to failure to perform the

obligation when the performance is due.
 2.Anticipatory Breach
section 39 - It occurs :
➔ when a party before the time for performance is due announces that
he is not going to perform the contract or,
➔ when a party by his own act disables himself from performing the
contract.

1. C enters into a contract to supply B with certain articles on the 1st

June. Before 1st June he informs B that he will not be able to supply
the goods.
2. X agrees to marry Y. Before the agreed date of marriage, he marries
Z.
 Consequences of Anticipatory breach

(A) May treat the contract as discharged—

(i) he is no longer bound by any obligations under the contract; &

(ii) He can immediately adopt the legal remedies available to him for breach
of contract, viz., file a suit for damages or specific performance or injunction.

(B) May not treat the contract as discharged—

(i) The contract will be operative for the benefit of both the parties,

(ii) If the contract is not rescinded and subsequently an event happens which
discharges the contract legally the aggrieved party loses his right to sue for
damages.
 CASE LAWS

In Frost v Knight, the defendant had promised that when the

plaintiff’s father died, he would marry her. However, during the
father’s lifetime, the defendant broke off his engagement to the
plaintiff. Without waiting for the death of her father, the plaintiff
sued immediately for breach of promise of marriage