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 by a party to fulfil contractual obligations without lawful excuse. Types: actual breach (failure to perform when due) and anticipatory breach (repudiation before performance date). The innocent party may sue for damages, seek specific performance, or treat the contract as discharged. Governed by Sections 73–75 of the Indian Contract Act, 1872.

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

contract violationfailure to performdefaultnon-performance

Antonyms / Opposites

performancedischarge by agreementfrustration

Related Terms

damagesspecific performanceanticipatory breachSection 73 Contract Actremoteness of damage

Dictionary Entry

← Back to Law Dictionary