Unit 8: Breach of Contract and Remedies — Meaning of Breach of Contract; Types of Remedies: Self-Help Remedies (Sell, Forfeiture or Use of Security or Bank Guarantee, Recovery from Advance or Deposit); Rescission from Contract; Judicial Remedies (Suit for Damages, Right for Restitution, Suit for Specific Performance, Injunction, and Suit of Quantum Meruit); Arbitration
1. Meaning of Breach of Contract
Breach = the failure to perform as promised (the actual-and-anticipatory anatomy of Unit 7): the non-performance, the defective performance, the repudiation. The breach’s legal significance: the injured party’s secondary rights’ accrual — the remedies’ menu of this unit; the breach’s evaluation (the condition-warranty-innominate hierarchy of Unit 4 determining the remedy’s scale: termination + damages, or damages only).
2. Self-Help Remedies (the party’s own powers — no court needed)
- Sell: the unpaid seller’s-and-bailer’s self-help (the goods’ resale after the notice: the unpaid seller’s rights under the sale-and-pledge law — the Code’s sale chapters; the deterioration-or-perishing goods’ emergency sales; the secured creditor’s realization-and-auction practice — the bandhak machinery of Property Law, Semester 3);
- Forfeiture or use of security or bank guarantee: the earnest-and-security deposits’ forfeiture on the defined breaches (the tender’s-and-construction contract’s earnest-money clauses: the forfeiture’s judicial review — the penalty-vs-genuine-preestimate line below); the security interests’ enforcement (the pledge’s-and-mortgage’s realization; the creditor’s-and-banks’ practice); the bank guarantee’s independent life — the guarantee’s call-and-payment (the autonomy principle: the guarantee paid regardless of the underlying dispute — the fraud-and-forgery exceptions only: the construction industry’s-and-international-trade’s daily doctrine; the Nepali courts’ bank-guarantee injunction jurisprudence — the narrow-fraud rule);
- Recovery from advance or deposit: the advance’s retention-and-adjustment (the buyer’s advance on the seller’s breach — the recovery-plus-damages; the deposit’s forfeiture where the defaulting-depositor);
- The self-help discipline: the reasonableness-and-notice requirements; the self-help’s judicial review (the taking-the-law-into-own-hands boundary).
This is a preview. The complete Law of Contract-I notes — full unit, Exam Focus box and model questions — are in the PDF / full version. Get the complete notes →