There are two main criteria that are deemed crucial to determine The second alternative is to wait for the due date set for the performance of the contract and then file a lawsuit against the defaulting party for the breach of the contract.After the execution of anticipatory breach of contract, the aggrieved party can rescind or quash the contract and can file a suit for damages without waiting until the due date for the performance of the contract.The event of anticipatory breach of contract generally calls for two alternatives to dispose of the breached contract by the aggrieved party: Under implicit repudiation, the party does not clearly refuse to carry out its obligation rather the failure to perform the promises prior to the due date under the contract is insinuated from his words or actions. Under explicit repudiation, the party has expressly breached the contract by clearly refusing or being reluctant to carry out its part of the contract prior to the actual date of the contract. Broadly there are two kinds of anticipatory breach of contract which are addressed below: Explicit repudiation An anticipatory breach of contract gives birth to the right of claiming damages and compensation to the aggrieved party under section 73-75 of the Indian Contract Act. In simple essence, an anticipatory breach of the contract refers to the lack or absence of intention of either of the parties to fulfil his obligations under the terms of the contract. Read more: Meaning, Nature and Scope of Contract ANTICIPATORY BREACH OF CONTRACTĪnticipatory breach of contract is the failure of either of the parties to conduct their part of the contract prior to the actual due date of the performance of the contract. This article will scrutinize and uncoil the concepts and consequences of actual and anticipatory breach of contract. Generally, the breach of contract is broadly classified under 4 categories: Minor breach, Material breach, Actual breach and Anticipatory breach of contract. The ramification of breach or repudiation of the contract is elucidated under section 73- 75 of the Indian Contract Act. Section 39 of the Indian Contract Act draws out further clarification of this concept by stating that if one party has failed to carry out or deterred itself from executing its commitment in its entirety, the other party may terminate the contract unless that other party has explicitly or impliedly consented to the continuation of the contract. The section Section 37 of the Indian Contract Act, 1872 explicitly defines that the parties to the contract are obliged to carry out or offer to perform their respective commitments or promises under the contract, unless they are exempted or excused under the terms of the Indian Contract Act or any other statute. The contract is breached when either of the parties fails or repudiates to perform his promise under the contract. A contract is lawfully enforceable if it meets the essential criteria and requirements along with the assent of the law. In general words, the term contract is a legally binding agreement that acknowledges and regulates the rights and obligations of the parties to that of the agreement. This article is written by Ritesh Das, a student at Symbiosis Law School, Hyderabad.
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