Preview

Breach of Contract

Good Essays
Open Document
Open Document
873 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Breach of Contract
BREACH OF CONTRACT
1. 2. 3. 4. 5. Default of the debtor (Mora Debitoris) Default of the creditor (Mora Creditoris) Positive malperformance Repudiation Prevention of performance (rendering performance impossible)

Default of the debtor (Mora Debitoris)
Any obligation under a contract has a time limit for its performance, be it an agreed fixed period or in the absence thereof a reasonable period. If the debtor neglects or fails to perform timeously, he/she commits breach of contract. Lawyers then say that he/she is in mora and this form of breach of contract is known as mora debitoris (failure of the debtor to perform on time or timeously).

Example: Mr Price Home Procurement Department orders 50 000 Christmas trees from Fairland Xmas Sales Department on 31/10/2012. The buyer informs the supplier that the Christmas trees are to be sold during the month of November up until 25/12/2012 (Christmas). The supplier delivers the Christmas trees on 28/12/2012. The facts clearly reveal that the Christmas trees have no use for Mr Price Home on 28/12/2012, and in these circumstances Mr Price Home will probably be entitled to resile from the contract.

Legal remedies of the creditor in the case of Mora Debitoris include the following: 1. The creditor can demand fulfillment of the contract on the grounds of the content of the contract.

2. 3.

The creditor can cancel the contract in the circumstances set out above. The creditor can claim damages if he/she suffered damage due to the breach and can prove such damage.

Default of the creditor (Mora Creditoris)
Where the cooperation of the creditor is necessary for the fulfillment of the obligations of the debtor, the creditor is guilty of a breach of contract in the form of mora creditoris if he, without justification, delays the fulfillment of the debtor's performance, where performance is tendered.

Example: Mr Price Home Procurement Department orders 50 000 Christmas trees from Fairland Xmas Sales Department on

You May Also Find These Documents Helpful

  • Good Essays

    A valid contract is “breached,” or broken, when one of the parties fails to fulfill the terms of the contract. The party harmed by the failure of the other party to comply with the contract may sue for breach of contract. Most states require that the injured party file a breach of contract lawsuit within a specified period of time, referred to as the statute of limitations. A sample court filing related to a breach of contract can be seen in Example A.…

    • 549 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Unit 14 P6

    • 132 Words
    • 1 Page

    All consequences of the breach of the condition are deemed to be sufficiently serious to justify termination. The buyer cannot terminate the contract if the non-conformity is a minor defect and slight breach. Slight breach is treated as a breach of warranty in the business sales contract. Slight breach is the breach when the conse-quences of breach do not go to the root of the contract or detriment the purpose of the contract. If the buyer accepts the goods there is no right of termination because termi-nation remedy required…

    • 132 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Before either party to a contract has a duty to perform, one of the parties may refuse to carry out his or her contractual obligations which is called anticipatory repudiation of the contract. When an anticipatory repudiation occurs, it is treated as a material breach of the contract, and the non-breaching party is permitted to bring an action for damages immediately, even though the scheduled time for performance under the contract may still be in the future. (Clarkson, Miller and Cross, Business Law Text and Cases, page…

    • 1094 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    PRETEST 2

    • 702 Words
    • 7 Pages

    ____ is a remedy requiring a breaching party to carry out the terms of the contract.…

    • 702 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Study Questions 4

    • 480 Words
    • 2 Pages

    When an individual, company or sovereign nation borrows money, there are usually legal obligations that have been set out in a debt contract…

    • 480 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    5th exam

    • 2007 Words
    • 6 Pages

    Discuss and explain – rescission, novation, silent fraud doctrine – the failure to disclose facts must show the defendant failed to disclose a fact that was material that the defendant had knowledge of those facts it caused a false impression over the plaintiff, the plaintiff relied on that information and made a decisions and must prove that the plaintiff was damaged, genuineness of assent – the parties of the contract agreed to the contract, they ascented to it based on their own free will, unjust enrichment – when you profit off of somebody else’s work. Did you have competence of what you were doing…

    • 2007 Words
    • 6 Pages
    Powerful Essays
  • Best Essays

    National Student Debt

    • 3585 Words
    • 15 Pages

    The definition of default is provided by Business Dictionary.Com “Borrowing: Failure to meet the terms of a loan agreement. Its two types are (1) Fiscal: Failure to make repayment on the due date. Generally, if a payment is 30 days overdue, the loan is in default. (2) Covenantal: Failure to live up to one or more covenants of the loan agreement such as exceeding the prescribed total borrowings.”…

    • 3585 Words
    • 15 Pages
    Best Essays
  • Better Essays

    A breach of contract occurs when a party’s duty to perform under a contract is absolute, and that party fails to perform. The duty can be absolute because it was not conditional in the first place; any conditions were either excused or fulfilled; or the duty was not discharged.…

    • 955 Words
    • 3 Pages
    Better Essays
  • Good Essays

    case wilson lumber

    • 440 Words
    • 4 Pages

    •Borrower promises to infoarm the bank of any event of default or other condition that will materially affect its…

    • 440 Words
    • 4 Pages
    Good Essays
  • Good Essays

    (b) Events of default - Sometimes breaching a contract, especially if it involves payment of money, can expose you to legal action including insolvency proceedings. These will often trigger the "event of default" clause in a lot of commercial contracts, especially those involving financial institutions. This will of course have dire consequences and can affect the smooth operation of one's business in the event an "event of default" clause is triggered. This of course goes without saying.…

    • 439 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Cheques

    • 3514 Words
    • 15 Pages

    | (1) Where a cheque is not presented for payment within a reasonable time of its issue, and the drawer or the person on whose account it a drawn had the right at the time of such presentment as between him and the banker to have the cheque paid and suffers actual damage through the delay, he is discharged to the extent of such damage, that is to say, to the extent to which such drawer or person is a creditor of such banker to a larger amount than he would have been had such cheque been paid.…

    • 3514 Words
    • 15 Pages
    Good Essays
  • Good Essays

    Provided that nothing in this section shall affect the rights of the seller where the neglect or refusal of the buyer to take delivery amounts to a repudiation of the contract.…

    • 613 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Payment to one joint creditor was a valid discharge of the debt as against the other. As under section 38 of the Contract Act, ‘An offer to one of several joint promisees has the same legal consequences as an offer to all of them. In the first part of the section it is provided that where an offer of performance has been made and not accepted, the promisor is not responsible for non-performance. Follows that when a legal tender has been made to one of two joint promisees and refused by him, the promisor is discharged from liability in respect of his promise.…

    • 506 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Joint and Solidary Method

    • 622 Words
    • 3 Pages

    –after payment of the debt, the paying solidary debtor can demand reimbursement from his co-debtors for their proportionate shares with (legal) interest only from the time of payment. Their liability is based upon the payment made by the co-debtor which creates a joint obligation of reimbursement on the part of the others. However, in case of insolvency of any solidary debtors, the others assume the share of the insolvent one pro rata.…

    • 622 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    OBligation

    • 2457 Words
    • 19 Pages

    Prescription is a mode of acquiring (or losing) ownership andother real rights thru the lapse of time in the manner and under theconditions laid down by law (…

    • 2457 Words
    • 19 Pages
    Good Essays