Skip to content

CMA Foundation · Fundamentals of Business Laws and Business Communication · Breach of Contract and Remedies for Breach of Contract

Under the Indian Contract Act, 1872, which of the following best describes an anticipatory breach of contract?

Anticipatory breach arises when a party, before the date fixed for performance, expressly refuses to perform or by his own act makes performance impossible. Breach after the due date is an actual breach, so the other options describe actual, not anticipatory, breach.

  1. AA party fails to perform on the due date after the time for performance has arrived
  2. BA party performs only part of the promise on the due date
  3. CA party, before the due date for performance, declares that he will not perform or makes performance impossible by his own actCorrect
  4. DA party performs the contract late but offers to pay for the delay

Explanation

Anticipatory breach occurs before the time for performance arrives, when a promisor repudiates the contract expressly or by conduct, such as disabling himself from performing. Failure on the due date is an actual breach, not an anticipatory one. Part performance and late performance also relate to actual breach after the due date.

Did you get it right without looking?

One question tells you little. A timed set on Breach of Contract and Remedies for Breach of Contract shows your real accuracy, how long you take and where you lose marks.

Practise Breach of Contract and Remedies for Breach of ContractFree diagnostic mock

More Breach of Contract and Remedies for Breach of Contract questions