Roll No. 10511.
Discuss the grounds of termination of contract and remedies available for breach of contract. Further, discuss the most appropriate remedy (in your opinion) for breach of contract in a market economy. Grounds of Termination of Contract:
Termination of a contract takes place when the parties to the contract are released from their contractual obligations. Contract termination may take in a number of ways which are: 1. By breach of contract.
A breach of contract takes place when a party fails to deliver on their contractual promises by failing to perform their obligations completely. Section 73 (c ) of Contract Act 2006 mentions that the contract need not be performed when one party cannot execute the contract due to its violation by the other party. 2. By agreement between the parties
Contracts may be terminated by agreement where the contract itself provides for the event bringing it to an end. Both the parties may also terminate the contract on mutual consent before the complete performance of the contract. Similarly, one of the parties may also absolve the other party from the contractual obligation. Section 81 of the Contract Act of Nepal mentions that the in case the parties to contract agree, the work under contract can be suspended or deferred or the work under contract may be replaced by new work. Similarly, as per the section 73 (a) of Contract act mentions that contract need not be performed in case one party to the contract absolves the other party from fulfilling the obligation according to the contract. 3. By performance of the party's contractual obligations A contract may also be terminated by performance of the parties' obligations laid down in the contract. 4. By frustration
Frustration occurs when some intervening events takes place or circumstances changes so fundamentally that it is beyond the contemplation of parties. In this situation, it would be impossible for parties to discharge the...