Breach of Contract 

A breach of contract is the refusal by one party to abide by its terms without any lawful excuse such as impossibility of performance, refusal to perform, defective performance or even late performance by the other party. Many commercial agreements contain express provisions for remedies available to the aggrieved party in the event of breach. For instance, in a contract for the sale of goods, the buyer may be entitled to ask the seller to make good or replace defective items. The contract may contain a clause that all the terms, which are to govern their contractual relationship, have been included by the parties in a written form in the contract itself.

A breach of contract does not per se bring a contract to an end. The breach in fact may give to the aggrieved party the right to terminate the contract. However, it is for the aggrieved party to decide upon whether or not to exercise that right that rests with him. A remedy is provided to an aggrieved party if the other party infringes the terms of the contract. Once a party fails to perform or performs inadequately, the other party can choose one or more of several remedies. The most common remedy available to an aggrieved party are explained in brief as follows:

Rescission

Rescission is the revocation of the contract. When a party of a contract refuses to perform or is not able to perform, the other party can put an end to the contract. Rescission is done to bring the parties, as far as possible, back to the position in which they were before they entered into the contract.

Damages

A breach of contract also entitles the non-breaching party to sue for monetary damage besides canceling the contract. Damages are designed to compensate the aggrieved party for the loss of the loss sustained in the bargain.

Specific Performance

It is a verdict given by the court, which orders the defendant to perform its obligations under the contract.

Injunction

It is a court order directing a person to do or refrain from doing some specified act which, of course, has been the subject-matter of a contract.

Quantum Merit

Unless a party has performed its promises in its entirety, it cannot claim performance from the other party.