A breach of contract means the failure of one party to a contract to fulfill their obligations as agreed in the contract, without any lawful excuse. In simple terms, when one party does not do what they promised, or does something contrary to the contract terms, it amounts to a breach.
---
Types of Breach of Contract
1. Actual Breach
When one party fails to perform their duty on the due date of performance, or while performing, they act contrary to the terms.
Example: A seller does not deliver goods on the agreed date.
2. Anticipatory Breach
When before the due date of performance, one party declares (by words or conduct) that they will not perform their obligation.
Example: A contractor informs a client that he will not build the house even before the work was to start.
---
Consequences of Breach of Contract
According to the Indian Contract Act, 1872:
1. Damages/Compensation – The aggrieved party can claim monetary compensation for loss caused.
2. Rescission of Contract – The innocent party can cancel the contract.
3. Specific Performance – Court may order the defaulting party to perform the contract as promised (especially in property or unique goods cases).
4. Injunction – Court may restrain a party from doing something inconsistent with the contract.
5. Quantum Meruit – If part performance has been done, the performing party can claim reasonable payment for the work already completed.
---
✅ In short:
Breach of contract arises when obligations are not performed. Depending on the nature, it may be actual or anticipatory. The law provides remedies like damages, rescission, injunction, or specific performance to protect the rights of the aggrieved party.
