PPT - Breach of Contract | Business Laws for CA Foundation PDF Download

 Page 1


CPT Section B Mercantile Law Unit 5 
CA. Nikshit HV Shah 
 
Page 2


CPT Section B Mercantile Law Unit 5 
CA. Nikshit HV Shah 
 
Concept of breach of contract and various modes thereof.  
Measurement of damages 
Concept of anticipatory breach of contract 
Rights of aggrieved party in case of actual and anticipatory breach 
Page 3


CPT Section B Mercantile Law Unit 5 
CA. Nikshit HV Shah 
 
Concept of breach of contract and various modes thereof.  
Measurement of damages 
Concept of anticipatory breach of contract 
Rights of aggrieved party in case of actual and anticipatory breach 
It is a case of refusal to perform the promise on the scheduled date.   
The parties to a lawful contract are bound to perform their respective 
promises.  
When one of the parties breaks the contract by refusing to perform his 
promise, he is said to have committed a breach.  
In case of breach, the other party (aggrieved) to the contract obtains a right of 
action against the one (defaulting) who has refused to perform his promise. 
Page 4


CPT Section B Mercantile Law Unit 5 
CA. Nikshit HV Shah 
 
Concept of breach of contract and various modes thereof.  
Measurement of damages 
Concept of anticipatory breach of contract 
Rights of aggrieved party in case of actual and anticipatory breach 
It is a case of refusal to perform the promise on the scheduled date.   
The parties to a lawful contract are bound to perform their respective 
promises.  
When one of the parties breaks the contract by refusing to perform his 
promise, he is said to have committed a breach.  
In case of breach, the other party (aggrieved) to the contract obtains a right of 
action against the one (defaulting) who has refused to perform his promise. 
Page 5


CPT Section B Mercantile Law Unit 5 
CA. Nikshit HV Shah 
 
Concept of breach of contract and various modes thereof.  
Measurement of damages 
Concept of anticipatory breach of contract 
Rights of aggrieved party in case of actual and anticipatory breach 
It is a case of refusal to perform the promise on the scheduled date.   
The parties to a lawful contract are bound to perform their respective 
promises.  
When one of the parties breaks the contract by refusing to perform his 
promise, he is said to have committed a breach.  
In case of breach, the other party (aggrieved) to the contract obtains a right of 
action against the one (defaulting) who has refused to perform his promise. 
At the time when the performance of the contract is due: 
Example:  
• A agrees to deliver 5000 pieces of Corn to B on 1st Sep, 2013.  
• On the said day, he failed to supply 5000 pieces of Corn to B.  
• This is actual breach of contract.  
• The breach has been committed by A at the time when the 
performance becomes due.