Know Everything about Breach of Contract In general, the term contract means a legally binding agreement reached between two partners and it should contain terms over which courts have the authority and obligation to enforce. A contract is breached or broken when any of the parties fails or refuses
to
perform
its
promise
under the contract. Breach of contract is a legal cause of action in which a binding agreement is not honored by one or more parties by non-performance of its promise by him renders it impossible.
Section 37 of the Indian Contract Act,1872 provides that the parties to the contract are under obligation to perform or offer to perform, their respective promises under the contract, unless such performance is dispensed with or excused under the provisions of the Indian Contract Act or of any other law
Fundamental Breach of Contract In today‟s globalized world, thousands
of
engage
business
which
millions
of
involves
in
companies
consumers. Thus, it would be difficult for these companies to draw up separate contract withevery individual, they came out with Standard Form Of Contract, whereby a standard form witha large number of terms and conditions are there restricting the liability of the party to the contract.The individuals can hardly bargains with the massive organizations and therefore theonly option available to them is either to accept it or reject it.
The doctrine of "Fundamental Breach" in the Law of Contract has developed mainly in the areas of sale (and hire-purchase), bailment and carriage. In the last two areas.
Breach of Contract - Position in India Whilst there is no express statutory bar in India against contractually excluding or limiting liability for damages, Section 23 of the Contract Act provides that the consideration or object of an agreement is unlawful inter alia if it is of such a nature
that,
if
permitted,
it
would
defeat the provisions of any law or if the court regards it as immoral or opposed to public policy. An agreement whose object or consideration is unlawful is deemed to be void.
In the case of contracts where parties are found to have unequal bargaining power, it is important to be wary of the possibility that
courts may refuse to enforce clauses excluding or limiting liability, which are found to be unconscionable. In 1986, the Supreme Court introduced to India the principle that courts will not enforce an unfair or unreasonable contract or an unfair or unreasonable clause in a contract, entered into between parties who are not equal in bargaining power.
An agreement undergoes through a tunnel before blooming into a contract. They are best thought of in a timeline, where the inception of formation begins with negotiations and witness modifications before a final consensus is reached. There can be certain weak spots in between this process or after the effectuation where the contract can be ‘breached’.