Breach of Contract is the violation of a contract by any of the binding parties. The binding parties are those who have agreed and signed upon the terms and conditions of the agreement. Therefore, anything that goes out to the contract considers being a breach of it. However, Breach of contract does not necessarily occur in written contracts, and oral contracts also fall under the same.
We will explain every aspect of Breach of contract in this topic, including types, remedies, and the process to follow in these cases.
Breach of Contract meaning is the violation of terms that the binding parties agreed on while signing the contract. Contracts are legally binding agreements, and when any of the parties fail to follow its terms and condition, it is said to be a breach of contract.
We can also understand this with examples.
There are different types of contract breach cases in our surroundings. Today, we will get to know about each of them in brief.
1. Breach of Contract between Employer and employee
This Breach happens when either you or your employer breaks one (or many) of the terms; for example, your employer doesn’t pay your wages or work the agreed hours.
2. Breach of Contract between Doctor and patient
Whenever a doctor undertakes the treatment of a patient, they both enter into a simple contract that states the patient will be cured and the doctor will be compensated (mainly through fees). However, there are many “if this” and “then what” scenarios of this contract. You can get a more clear understanding of the same when you consult a good and experienced civil lawyer in India like the ones with Litem.
3. Breach of Contract between Buyer and seller
Contract breach between buyer and seller is one of the most common contracts that every one of us once has entered. The contract entitles the buyer to seek remedy for defective and damaged product delivery or late delivery and the Breach of a warranty claim. In contrast, the seller can sue for the unpaid amount or any other breach by the buyer’s side.
4. Breach of Contract between Two Companies
If any of the contract terms between two businesses are ignored, incorrectly performed, entirely broken, or only partially fulfilled, this may constitute a breach of contract. Common examples include failure to provide services or goods paid for and non-payment of invoices relating to work carried out or goods delivered.
5. Breach of Contract between Landlord and tenant
When either the tenant refuses to pay the rent or performs some actions against the rent agreement, then the landlord, after the notice, can terminate the rental agreement.
In case when landlord violates the contract, then the tenant can seek the termination of the contract, abate of rent (relief from rent or reduced rent), and relief from damage.
6. Breach of Contract between Lawyer and client
Breach of contract between client and lawyer involves cases when your lawyer failed to comply with the agreements. It also includes matters when a lawyer fails to proper research or even fails to file any defined action under the agreement/contract.
Breach of Contract can be wholly or partially. If any of the terms mentioned in the contract is violated, it becomes a breach. It can happen in a way where parties no longer stick to the agreement or any of the parties intends to violate the agreement. Based on the same, the Breach of contract has been divided into four types:
1. Actual Breach
The actual Breach of contract happens when one of the parties fails or refuses to complete the duty mentioned in the contract within the time frame.
Example: A common example is when one vendor either fails to supply the goods on time or supply a different product than defined in the contract.
2. Material Breach of Contract
In a material breach of contract, one party receives less than what was promised in the contract.
Example: The best way to understand the material breach of contract is through example.
You have purchased any smartphone online, and the website mentions the in-box accessories include a charger, headphones, and phone case. But when you receive the item with some of the in-box missing accessories. Then this is a material breach of contract.
3. Minor Breach
Minor Breach occurs when the party completes the contract, but some minor parts remain incomplete.
Example: Easy example of this is when you hire an architect and explain every requirement, but when the design comes out, one point (minor) out of all is missing in that design. However, that small part is just the small portion of the entire contract where they provided you with the whole design for the house, but it will still be concluded as a minor breach of contract.
4. Anticipatory Breach
Anticipatory Breach occurs when either of the parties acknowledges its inefficiency in fulfilling the contract before the end of the agreed time frame. The party can do so by direct informing the other party or by showing significant gestures. This Breach has not taken place yet but is a high chance of happening soon.
Example: An example of this could be where you are promised to deliver a service (any) on Tuesday morning, but now the party says that it will take 4-5 more days to be delivered.
When one of the parties breaches the contract, the remaining ones get entitled to remedies and relief for their damages and have different options against the breacher. In this section, we are going to look at all those options under the Breach of a contract:
1. Rescission of Contract
Rescission of the cancellation of the contract. It generally cancels the contract with the mutual agreement of both parties. After which, none of the parties will be bound to the terms of the contracts as it simply set them free from the contract. Contracts sometimes contain rescission provisions as well.
2. Sues for Damage
The party can sue the breacher for damages in court against the Breach of contract. The most common remedy in breach cases is a monetary award to the plaintiff.
The injunction is a court ordering one party to stop a certain set of actions related to the contract. It may be temporary or permanent depending upon the circumstances of the case.
For example: In case of breach of property contract between seller and property dealer, the court may instruct the party to not make any sale and purchase of the property during the hearings of the case.
4. Quantum Meruit
Quantum Meruit involves cases where one party gets the benefit of the duty fulfilled by another party but now they are unable to perform their part of the contract or somehow stop another party from completing the contract. In those cases, the court may grant quantum meruit to the party in which they get paid in proportion to the work done.
For example, a person has hired a contractor for building his house but now in the mid of the construction, he stops the contractor from further construction. In this case, the contractor is entitled to quantum meruit means he will get as much as he has worked.
The cases of Breach of the contract are quite complex and complicated. You can’t even figure out where to file the case and against whom. The suits against the breacher can be filed at the district court, respective tribunals, or any other law-binding firms. For filing any such suit, you would need an experienced advocate with years of expertise in civil matters. With Litem, you can get in touch with one of them at very ease. Then, all you have to do is follow the simple three steps:
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