Page 33 - 01. Indian Contract Act, 1872

 Consequences of Breach.
i. It discharges the aggrieved party from performing his obligations.
ii. The aggrieved party is entitled to proceed against the party at fault.

 It may be-
(i) Actual Breach - If one party defaults in performing his part of the contract on due
date.
(ii) Anticipatory Breach- When a person repudiates the contract before
the stipulated time for its performance has arrived.It occurs when the promisor
refuses altogether to perform his promise and
signifies his unwillingness even before the time for performance has arrived.
 It may be by-
1) Express repudiation, or
2) Party disables himself.

The aggrieved party may exercise either of following two options-
1) May wait till the due date i.e. it may treat the contract as operative.
2) May decide not to wait till the due date, but may immediately rescind the contract and
bring an action for damages.

Relevant Case Laws:
Hochester Vs. De La Tour
Avery Vs. Bowden

Facts –
1) B chartered A's ship
2) B agreed to load it with a cargo in Odessa within 45 days.
3) B was unable to supply the cargo, but A continued to demand it
4) Meanwhile a war brokeout, rendering the performance impossible.

Decision - Contract was discharged and A cannot sue for damages.

Frost Vs. Knight

Facts-
1) B promised to marry C on the death of his father.
2) B broke off the engagement during lifetime of his father.

Decision - C could bring an action for damages without waiting for death of B's
father.

Remedies available to aggrieved party
 Recision of contract
 Claim for specific performance of the contract

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