Breach Of Contract - Explanation & Its Types


Breach of contract means the promisor fails to perform the promise or breaking of the obligations which a contract imposes. It occurs when a party to the contract without lawful excuse does not fulfill his contractual obligation or by his own act makes it impossible that he should perform his obligation under it. It confers a right of action or damages on the injured party.

Breach of contacts may be of two types:

1. Actual breach of contract: Actual breach means promisor’s failure to perform the promise on the due date of performance. When a promisor fails or refuses to perform the promise upon the due date for performance then it is called an actual breach of contract. In such a case the promisee is exempted and may resend the contract. The promise can sue the party at fault for damages for breach of contract.

2. Anticipatory Breach of contract: It occurs when a party to executory contract declares his intention of not performing the contract before the performance is due. It may take place in two ways.

a) Expressly by words: here a party to the contract communicates to the others party before the due date o performance, his intention not to perform it.

b) Implied by the conduct: Here a party by his own voluntary act disables himself from performing the contract.

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