Breach of Contract (Indian Contract Act, 1872)
A breach of contract happens when one party does not follow the terms of the agreement. In simple words, when someone fails to do what they promised, it is called a breach.
There are two types of breach:
- Actual Breach – when the party breaks the contract on the due date or during performance.
- Anticipatory Breach – when a party clearly says before the due date that they will not perform their promise.
Example:
Rahul agrees to deliver 50 books to Aman on 10th April. If Rahul does not deliver the books on that day, it is an actual breach. But if Rahul informs Aman on 5th April that he will not deliver, it becomes an anticipatory breach.
When a breach happens, the affected party gets certain rights:
- They can cancel the contract
- They can claim damages (compensation)
- They can also take legal action
The main aim of giving compensation is to put the injured party in the same position as if the contract was properly performed.
Important Point:
Not every failure is a breach. If performance becomes impossible due to reasons beyond control (like natural disasters), it may not be treated as a breach.
So, a breach of contract is simply the failure to fulfill a promise, and the law provides remedies to protect the affected party.