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Breach of Contract by Tayyab Shabbir
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Transcript of Breach of Contract by Tayyab Shabbir
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8/6/2019 Breach of Contract by Tayyab Shabbir
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BREACH OF CONTRACT
PRESENTED BY: TAYYAB SHABBIR
ID NO: 2162
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BREACH OF CONTRACT
Means one party fails to perform his obligation.
While other party suit to him in Court.
In court to find why one failed to perform his promised.
Example:
A promises to deliver the car on end of July to B. But A
fail to deliver it. B sue him want to deliver the
possession of a car.
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DISCHARGE BY BREACH OF CONTRACT
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ACTUAL BREACH
One party fails to perform a contract.
When performance is due.
Failure party did not give response about fulfillment
of contract.
Example:
Mr. T agrees to deliver 10 bags of rice on 1st May. He
does not deliver on that day.
This is an actual breach of contract.
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ANTICIPATORY BREACH
One party informs that he will not perform his
contractual duties when due.
It has two ways
Express Breach
Implied Breach
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EXPRESS BREACH
Communication between parties.
One party inform that he will not to perform the
contract.
Before the due date of performance.
Example:
X agrees to supply 10 tons of rice to Y on 1st May. On
15thApril X inform to Y, he will not supply the rice.
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IMPLIED CONTRACT
One party act that he will not to perform the
contract.
Other word performance of the contract isimpossible.
Example:
A promise to sell his mobile to B on 1st July andbefore that date he sells the same mobile to C.
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REMEDIES FOR BREACH OF CONTRACT
It occurs when one party breaks the contract.
By refusing to perform his promise.
So the aggrieved party have remedies are
available against the guilty party.
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REMEDIES AVAILABLE
SUIT FOR RESCISSIONSUIT FOR RESCISSION
SUIT FOR DAMAGESSUIT FOR DAMAGES
SUIT FOR QUANTUMMERUIT
SUIT FOR QUANTUMMERUIT
SUIT FOR SPECIFICPERFORMANCE
SUIT FOR SPECIFICPERFORMANCE
SUIT FOR INJUCTIONSUIT FOR INJUCTION
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SUIT FOR RESCISSION
Mean cancellation of a contract.
Aggrieved party sue the guilty party for damages.
Places the parties back in the positions they were in
prior to the creation of the contract.
Example:A contracts to supply cement to B on 15th July. B
agrees to pay the price on receipt of goods. A does not
supply on due date. B is discharge from liability to
pay. B can rescind and claim damages.
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SUIT FOR DAMAGES
The aggrieved party may sue for damages.
Damages are monetary compensation.
Kinds of Damages
Ordinary Damages
Special Damages
Exemplary Damages
Liquidated Damages
Nominal Damages
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ORDINARYDAMAGES
Also known as general damages.
It is based on actual loss.
Different b/w contract price and the actual price.
Example:
A will pay to B 1 Lac for loan on 1st January. A
does not pay on that day. A is liable to pay B also
include the interest on it.
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SPECIAL DAMAGES
It is indirect loss which arise breach of contract.
The parties must be aware of the loss.
Otherwise the guilty party is not responsible for special
damages.
Example:A contract C to buy 1 ton of iron for Rs. 90,000. A also
contract to sell B for Rs110,000. A also inform C about
the purpose of contract. C fails to supply to A. C is
liable for loss of profit which A would earned from B.
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EXEMPLARYDAMAGES
These damages are awarded to punish the guilty party.
Which cause by mental stress and disappointment to
the aggrieved party.
Have no place in law and not recoverable.
Example:OS Bank promised to give loan to W for trip to
California by crediting his account. Bank failed to do so
and Ws cheque was dishonored. The court allowed
damages for the emotional distress.
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LIQUIDATED DAMAGES
Both parties fix the amount of damages.
In case of breach the defaulting party will paid
agreed amount.
The court will recover only fix amount.
Example:A promises to pay B Rs. 50,000 as damaged if he
fails. A fails to fulfilled the contract. B can recover
damages not exceeding Rs. 50,000.
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NOMINAL DAMAGES
Aggrieved party suffers no loss.
So Neither awarded compensate the aggrieved party.
And also not punish the guilty party.
Example:
A promises to sell cement to B for Rs.200 per bag. A
does not supply at the time of breach, the market rate
of cement is the same. B is entitled to nominal
damages.
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SUIT UPON QUANTUM MERUIT
One party has done some work and other party
cancel the contract.
One party can claim for the work has been done.
Example:
Mr. R contract a build 3 storey house for Mr. F. When
one storey is complete, Mr.R stops Mr. F from work.Mr. F can get compensation for work done.
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SUIT FOR SPECIFIC PERFORMANCE
Means the actual carrying out of the contract.
Court order to guilty party to fulfill the contract.
Example:
A agrees to sell B his painting but commits
breach. B cannot sue for damages but A shall beorder to make specific performance to B.
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SUIT FOR INJUNCTION
It is a stay order to make a person perform his promise.
It is a mode of securing specific performance.
It is preventive relief for aggrieved party.
Example:
W agrees to Y perform drama play at Z theatre.Afterward W contract to another U. Held on courtmade a decision to be perform only Y drama play at Ztheatre.
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