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Breach of contract
If either party to a valid contract fails, without just cause, to perform their obligation under the contract, then this is a breach of contract. It is also the case if the guilty party only performs part of their obligation. The fault or responsibility of a part makes no difference as to whether a party is considered as being breach of contract. A party is only regarded as being in breach of contract where the time of performance has passed. Thus will be no breach where one party informs another that they will be unable to perform in the future.
There are various different forms in which Breach of Contract may occur:
Anticipatory Breach: This is where there is a time delay between the configuration of a contract and the date when it should be performed.
E.g. after configuration but before performance (A) gives notice to (B) that (A) no longer intends to perform his/her obligation under the contract. Where this case occurs the innocent party (B) can take any of three steps:
Wait till the date when performance is due to occur and if it doesn't occur then they can seek a court order to enforce the performance or sue the guilty party for damages (monetary). Anderson V Howie ([1848] 10D.355)
As soon as (A) gives notice (B) the innocent party can seek a court order enforcing the performance to be conducted or withdraw and sue for damages
The innocent party (B) could carry on with his/her side of the contract on the agreed date and then claim for damages. (White & Carter V McGregor 1962 SC (HL)1.
Failing to Perform the Contract: This is where one party to a contract (A) refuses or fails to conduct his/her contracted obligation. When this occurs, it is classed as a repudiation of the contract by (A). If this instance occurs the innocent party (B) can choose to withdraw altogether from the contract without undertaking their contractual obligation.
Delayed Performance: This occurs when contractual obligations are not performed on the due date, e.g. If a delivery of an item does not get delivered on due date, the innocent party would have to illustrate that time was of the essence i.e. was the delay in the performance a material breach, if so the innocent party will have the right to withdraw. If it is not a materials breach they will only have the right to sue for damages.
Unsatisfactory Defective Performance: When this occurs it will depend on how severe the breach was. It will have to be determined whether the performance conformed to the requirements of the contract or not. If it does not conform to the contract it will have to be analysed to see if it is a material breach or just a trivial breach. In this case only a material breach can lead to the innocent party withdrawing. In a trivial breach the innocent party will have to conform to their side of the obligation.
REMEDIES FOR BREACH OF CONTRACT
There are no remedies for any breach of contract that are not considered to be A Material Breach of Contract as they are classed to be non-serious. However the remedies for breach of contract under Sots Law can be decided into two groups:
The Self Help Remedies: An individual can exercise these without going to court.
Retention and Lien:
RETENTION - Involves the innocent party with holding, their performance to their side of the contract e.g. withholding payment of money
LIEN - Involves the innocent party retaining or refusing to deliver the other party's goods.
Stipulated in the Contract Remedies: This is where all parties within the contract will agree at the outset of the contract damages payable in the event of a breach of contract. Any court will uphold this type of contract as long as the clause represents a genuine effort to estimate in advance the loss, which various types of breach will cause. The only way a court will have to step in is if the breaching party refuses to pay the set breach agreed upon.
The Judicial Remedies: These can only be enforceable after the granting of a court order
A Decree Ad Factum Praestandium: The innocent party may wish to force the contract breaker to perform his contractual obligations. In view of that, He may seek a court order requiring the party in breach to do something or not to do something. Failure to do so amounts to contempt of court and could lead to a fine or imprisonment.
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