LawContract Lawbasic

Breach of Contract

/briːtʃ əv ˈkɒntrækt/

Contract Law Term

Images

CC-licensed · free to use
More on Wikimedia
Loading images…

Video

Definition

Failure to perform any term of a contract without legal excuse. Actual or anticipatory.

Jurisdiction: International

Etymology

From English contract law, largely codified in India by the Indian Contract Act, 1872. Roots in Roman law concepts of obligatio and later English equity principles.

Examples

A builder who agrees to complete a house by December but abandons the project in October commits actual breach — the owner can sue for damages immediately.
A supplier who notifies the buyer a month in advance that they will not deliver commits anticipatory breach — the buyer can sue at once without waiting for the delivery date.

Case Study

Section 73 of the Indian Contract Act codifies the rule in Hadley v. Baxendale — damages for breach are limited to losses arising naturally from the breach or those in the reasonable contemplation of the parties at the time of contracting.

Key Cases

Murlidhar Chiranjilal v. Harishchandra Dwarkadas

1962

AIR 1962 SC 366

Discussed anticipatory breach and the innocent party's right to immediately accept repudiation and sue for damages. Section 73 applies to both actual and anticipatory breach.

View on Indian Kanoon →

Also Known As

contract defaultnon-performance

Synonyms

contractual termcontract doctrineagreement principle

Antonyms / Opposites

performancedischarge by agreementfrustration

Related Terms

damagesspecific performanceanticipatory breachSection 73 Contract Actremoteness of damage

Dictionary Entry

← Back to Law Dictionary