When each party fulfills their promise, the contract stands to be discharged, and if they fail to adhere to the terms, the contract is said to be breached.įor example, A contract is formed between Sachiya Steel, a Pan Phillips Screws manufacturer, and Oil and Natural Gas Corporation stating that Sachiya Steel has to supply 15-inch screws every week to ONGC continuously for five years. In every contract, each party must complete their individual obligations. The aggrieved parties can file a lawsuit against the defaulting party in the court. The other parties are called the Aggrieved parties. The party that has breached/violated the terms of contract is called the defaulting party. If both parties do not adhere to the individual obligations, then the other party has the right to file a legal case against them.īreach of Contract is defined as the failure to fulfil the contractual obligations by one or more parties under the contract. Such terms and conditions direct the parties regarding the following: The contract is the agreement created with the mutual acceptance of the terms and conditions by all the parties. The offeror is the person that makes an offer, and the offeree is the person to whom the offer is being made. The offer can be formed either verbally or in writing. Accepting an offer with a condition becomes a ‘ Counter Offer.’ The first offer stands to be cancelled.

The acceptance should be unconditional and absolute. The offer presented by one party should be clear and definite. The contract is formed when the offer presented by one of the parties gets accepted by the other party. The word ‘Promise’ signifies what the parties are legally allowed to do and what they are not legally allowed to do. The term ‘Contract’ is the promise between two or more parties that is enforceable under the law.

Breach of contract