13 Juillet 2010 3eme chambre civile
A contract is discharged when rights and obligations created by it comes to an end, i.e., contracting parties no more have any responsibility or liability to each other.
Discharge of contract
1. 2. 3.
4. 5. 6.
By performance- actual or attempted. When promised performance becomes impossible. Mutual agreement-by novation, alteration or recession (Sec.62), remission or waiver (Sec.63). Lapse of time Operation of law Breach of contract
Breach of contract
Breach of contract is failure of a party to perform his obligations under a contract. When one party commits a breach the aggrieved party becomes entitled to rescind the contract and to claim damages, if any. The breach of contract may be Actual breach of contract, or Anticipatory or constructive breach of contract.
Actual breach of contract
Where one party fails to perform his contractual obligations on due date of performance, or during the performance, he is said to have committed a breach of contract. If the performance is not strictly according to the terms of the contract, then also it is treated as breach of contract.
Anticipatory breach of contract.
Sec.39 ‘when a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the promisee may put an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance.’ Anticipatory breach of contract may be express or implied.
Effect of anticipatory breach
The aggrieved party may treat anticipatory breach as actual breach. The aggrieved party may decide to ignore the anticipatory breach, and wait for the due date of performance. Doctrine of anticipatory breach does not apply to promises to pay debts under promissory notes and bonds.
Remedies for breach of contract
The aggrieved party may Cancel the contract which will relieve him from all contractual obligations. (rescission)