LOW HUI PENG

Discharge by breach can be defined as contracts may be terminated as a result of failure of the promisor to fulfill his obligation under the contract. A contract must be performed in accordance with its terms. The promisor must perform or tender performance of his promise. Where he has failed to do so, the promisee may be entitled to be discharged from future obligations under the contract. Breaches may occur during performance of the contract, at the time when performance is due, or even before the time for performance.

 

 

Section 40 of the Contracts Act 1950 states that when a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the promisee may put an end to the contract, unless he has signified by words or conduct his acquiescence in its continuance. (Lawteacher.net, 2015) Additionally, Section 76 of the Contracts Act 1950 states that a party rightfully rescinding contract is entitled to compensation. It states that a person who rightfully rescinds a contract is entitled to compensation for any damage which he has sustained through the non-fulfillment of the contract.

 

 

In the event of a breach of a contract the innocent party may claim any one or more of the remedies, such as damages, specific performance, or injunction. Damages refer to the monetary compensation or pecuniary compensation that an aggrieved plaintiff may claim from the defendant who breached the contract. The purpose of damages is to compensate the innocent party for loss suffered as a result of a breach of contract. This remedy is available as of right. Specific performance is an order of the court requiring the party who is in breach of the contract to perform his part of the contract exactly as he had promised. This is said to be an equitable remedy as it was first recognized by the courts of equity. Injunction is an order of the court directing the defendant to refrain from doing something in breach of the contract. (Drukker.co.uk, 2015)