Contract Breach

1709 Words Apr 16th, 2012 7 Pages
1. Introduction
Breach of contract is when one or both parties, who came to a mutual agreement, do not fulfil their contractual agreement i.e. interfering in the other party’s performance or non-performance by one or both parties. These are only two of the possible five forms of Breach of Contract.
The five types of Breach of Contract will now be discussed in detail.
2. There are five different forms in which Breach of Contract can take place:
a. Default of the debtor (mora debitoris)
i. Explanation
Mora Debitoris means that a debtor has failed to adhere to the contractual agreement in a certain time frame. Be it not making a payment or violating agreed conditions of the signed contract.
There are two forms of this form of breach of
…show more content…
iii. Legal Remedies with assistance of the court:
- The creditor may retain the defective performance and claim for damages suffered.
- The creditor may decline the defective performance and claim that the contractual agreement be fulfilled as was mutually agreed.
- The creditor is allowed to cancel the contract subject to the creditor reserving himself the right of cancellation (Lex commissoria). If the performance is so bad that it is not practical to uphold the contract.
d. Repudiation
i. Explanation :
This is when one or both parties intend not to honour their obligations under the contract. This may occur before, during or after the fixed date as contractually agreed. The behaviour of the guilty party must clearly indicate that they do not intend to honour the agreement.

ii. Example:
A party may deny the existence of the agreement
OR
A party may try to withdraw from a contract without justification.
OR
A party may give notice that they cannot or will not perform.

iii. Legal Remedies with assistance of the court:
- The innocent party may choose to ignore the repudiation.
- The innocent party may claim fulfilment of the contract.
- The innocent party may cancel the contract.
- The innocent party may claim for damages suffered.
e. Prevention of performance (rendering performance impossible)
i. Explanation :
Two situations may be
Open Document