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What is a breach of contract?, , The Indian Contract Act 1872 is one of the oldest, mercantile laws of the country. The law was, enacted on the 18 September 1872 and is, applicable to the Whole India., , A contract defined under Section 2 (h) of the, Indian Contract Act 1872 means, “any agreement, which is enforceable by the law.” The contracts, can be written using formal or informal terms and, can be entirely spoken or verbal., , A breach of contract is a violation of any of the, agreed-upon terms and conditions of a binding, contract. The breach can be anything from a late, payment to a more serious violation such as, the failure to deliver a promised asset.
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Types of Breach of Contract, 1. Material breach of contract:, , Material breach of contract happens when a key, element of a contract doesn’t get fulfilled as, agreed. It defeats the purpose of agreement. In, this case, mostly the aggrieved party goes to the, court and tries to collect damages caused by the, breach., , For example: (1) If you went to buy the computer,, but you received only the monitor. It will be, considered as a breach of contract and you will, be entitled to take a legal action., , (2) You entered a contract with a, media house to publish the article about the, recently held event, but they failed to do so., Then, it will be considered as a breach of, contract.
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2. Minor breach of contract: A minor breach, also, known as a partial breach or an immaterial breach, where the important aspects of a contract were, received, however the small part of obligations, remained missed. In such a case, the suffering, party can prove that they are able to pursue a, legal remedy if they can prove that the breach, has resulted in a financial loss., , For example: (1) If a website developer was, asked to build a website, but he skipped the page, of the team. Then, this will be considered as a, minor breach, because nothing significant like company details, testimonials etc. have been, skipped., , (2) A shipment of goods got late., In this case also, there can be no legal remedy, unless one could show how the delay caused a, financial loss.
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(3) Anticipatory breach of contract: An, anticipatory breach of contract happens when, the breaching party notifies the other party that it, will not be able to fulfill their obligations by the, agreed time., , For example: (1) An interior designer finds that it, is impossible to meet a deadline, hence stop the, work and invest all his/her resourced into a new, project. The party can take a legal action against, the architects., , (2) If a person receives an internet, connection of monthly services, but the recipient, says that he/she won't be paying for a particular, month, but still expects the services. It would, lead to an anticipatory breach of contract.
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(4) Actual breach of contract: An actual breach, of contract happens when a person fails to meet, the certain obligations stated in a contract, complying with authoritative time constraints to, finish nonperformance., , For example: (1) Shyam enters in a contract with, Ram and promises that he will deliver 30 bags of, cotton on 12‘ February 2021. But on the, scheduled day, he fails to deliver the same. This, is an actual breach of contract., , (2) Peter enters into a contract, with John and promises that he will sing every, Saturday and Sunday on his club for 1 hour during, next four months in the exchange of Rs. 5,000., However, on the 4" night, he didn’t turn up. This, is an actual breach of contract on the part of, Peter.
