Performance & Breach

What is meant by performance?

Performance of contract is one among the several modes of discharge of contract. Performance refers to the fulfillment of the obligations as stated in the terms of the contract. The parties to the contract must either perform or offer to perform their respective obligations, unless they are exempted by the law.

Types of Performance: Performance of contract can be split up into 2 types.

Actual Performance: When a party to the contract has made a promise (promisor) regarding the offer of performance to the other party (promisee) and the promise is accepted by the promisee, it is termed as actual performance.

Attempted performance:  When there is an offer of performance made by the promisor to the promise and the offer has not been accepted by the promisee, it amounts to attempted performance. The offer may be accepted by the promise in future depending on his preferences.

What is meant by breach?

A breach of contract refers to the non performance of duty, but not every nonperformance of duty can be accounted as breach of contract .A party to the contract need not have to perform his promises under a contract until performance is due.

Breach of a contract may result in the termination of the obligations of the contract. It occurs when either one or both parties to a contract have made a default in the performance of an obligation as required by the contract. A breach occurs when a party:

• Denial to perform the contract
• Indulges in an action which is prohibited by the contract
• Hinders the other party from performing his obligations

Types of breach:

• Actual Breach: When there is an actual non- performance or a violation of the terms of the contract by any of the parties to the contract it is termed as actual breach. The affected party can claim for damages in the court of law. 
• Anticipatory breach: Anticipatory breach happens when a party to the contract, announces well in advance of the due date for performance, that he cannot perform his quota of obligations as stated by the contract. In such cases, the other party may sue for damages resulting from non-performance, immediately after the breach is announced.

Questions:

• What is Actual Breach?
• What is Attempted Performance?