JOURNEY FROM PERFORMANCE TO BREACH IN INDIAN CONTRACT
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Abstract
“The only chains you should wear in your life are the chains of commitment”:As the quote itself states the importance of the commitment towards the performance of contract irrespective of the exceptions provided in the Indian Contract Act, 1872i . A simple thing is that if you can’t do commitment then don’t plan and if you do plan then do commitment. This applies in Indian Contract Act, 1872 (taken from English Common Lawii) which includes in chapter-IV sections for the performance of a contract: section 40, 41, 43, 44, 42, 45, 46-50, 51-54, 55-58, 62, 63 and 67, again chapter-IV section 39, for anticipatory breach of a contract followed with section 73 for actual breach. Due to the non-performance of a contract, the consequences (compensation of damages) extend to Chapter-VI section 73 (damages for breach) and section 75 (rescindingiii of a contract for compensation) : 1. Chapter- IV: OF THE PERFORMANCE OF CONTRACTS, from (Contracts which must be performed)iv specifically, obligation of parties to contract (section- 37) to (Contracts which need not be performed)v which ends with Effect of neglect of promisee to afford promisor reasonable facilities for performance (section- 67). 2. Chapter-IV Section-39 which introduces and gives the meaning of anticipatory breachvi and their effect upon the right to recover the damage. 3. Chapter-VI extends to the inconvenience caused by non-performance of a contract and remedies given for the same in section-73 to 75vii (includes actual breachviii in 73ix which is unliquidated damagesx and for liquidated damagesxi is in 74 and in section 75 is compensation through rescinding of a contract. PERFORMANCE OF THE CONTRACT Contracts which ‘must’ be performed: Section 37: Obligations of parties to contract: “The parties to a contract must either perform, or offer to perform, their respective promises unless such performance is dispensed with or excuse under the provisions of this Act, or of any other law”. “Promises bind the representatives of the promisors in case of the death of such promisors before performance, unless a contrary intention appears from the contract”xii
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