BREACH OF

CONTRACT
Group Members
 Mishal Shahzad
M1f22UBBA026

 Adeema Attique
M1F22UBBA028

 Wajeeha Basharat
M1F22UBBA013
Table of Contents
1. Contract
2. Meaning of Contract
3. Enforceable Conditions
4. Before Signing Contract
5. Ending a Contract
6. Types of Contract
7. Breach of Contract
8. Types of Breach of Contract
9. Defence to Breach of Contract
10. Case Study
11. Recent Legal Developmemt
12. Essentials of Breach of Contract
13. Practical Implications
 Contract
A contract definition refers to a two-party
agreement, either given verbally or in writing, that
provides a product or service to an individual or
business. Consideration between the parties must
be exchanged for the contract to be lawful and
enforceable. The purpose of a contract is to protect
the parties if either party does not fulfill its
promises. If the contract is broken, it can be turned
over to a court for enforcement.
 Types of terms required to
make a contract legal
1. An offer
2. Acceptance
3. Consideration
4. Sufficient mental capacity
5. Intent
 Contract is an early 14th century Old
French and Latin word. The Old French
origin came from the word contract, which
Meaning refers to an agreement between at least
two people to do or not do something.

of Marriage is an example of this type of

contract. The English word contract is also
derived from the Latin word contractus,
Contract which means to draw together. Contract,
in the legal sense used today, didn't
appear until the early 1600s.
Enforceable Conditions
1. An offer that specifically details exactly what
will be provided
2. Acceptance, which is the agreement by the
other party to the offer presented
3. Consideration, money or something being
exchanged between the parties
4. Capacity of the parties in terms of age and
mental ability
5. The intent of both parties to carry out their
promises.
Before Signing a contract
1. Ensure that it reflects the terms and conditions
that were negotiated.
2. Seek legal advice.
3. Allow plenty of time to consider and understand
the contract.
4. Don't be pressured into signing anything if you
are unsure.
5. Never leave blank spaces on a signed contract
cross them out if you have nothing to add so they
cannot be altered later.
7. Obtain a copy of the signed contract for your
records.
Ending a Contract
1. By frustration where the contract cannot
continue due to some unforeseen circumstances
outside the parties control.

2. For convenience where the contract allows a

party to terminate at any time by providing notice
to the other party.

3. Due to a breach where one party has not

complied with an essential contract condition, the
other party may decide to terminate the contract
and seek compensation or damages.
Types Of  Express
Contract
 Bilateral
Contract

Contract  Implied  Unilateral

Contract Contract
Breach of Contract
A breach of contract occurs when
one party in a binding agreement
fails to deliver according to the
terms of the agreement. A breach of
contract can happen in both a
written contract and an oral
contract. The parties involved in a
breach of contract may resolve the
issue among themselves or in a
court of law.
 Anticipatory Breach of Contract Material Breach

Types of Breach VS vs

of Contracts Actual Breach of Contract Minor Breach

occurs of Contract
Breach
A breach of contract when one
party in a binding agreement fails to deliver
according to the terms of the agreement. A

Of breach of contract can happen in both a

written contract and an oral contract. The
parties involved in a breach of contract may
Contract resolve the issue among themselves or in a
court of law.
Anticipatory Breach of Contract
Anticipatory breach, also known as anticipatory repudiation, is a term used
in contract law to describe a situation where one party to a contract indicates
through words or actions their intent to not perform their contractual
obligations, before the time for performance has arrived. This breach of
contract allows the non-breaching party to take legal action and seek remedies,
such as damages or specific performance, before the contractual deadline has
passed.
Actual Breach of Contract
Actual breach is a failure to perform a contractual obligation when the
agreed-upon time for performance has arrived. In contract law, an actual
breach occurs when one party fails to fulfill their obligations under the
agreement, leaving the other party with no choice but to seek remedies to
compensate for losses incurred as a result of the breach.
Material breach
A material breach is when you receive something
different from what was stated in the agreement. A
material breach typically involves a failure to perform
an important and essential element of the contract as
agreed.

Material breaches include:

1. Exchanging goods for different goods other than

those agreed upon.

2.Failure to deliver goods or services.

Minor breach of contract
A minor breach of contract occurs when a party to a
contract performs most of the terms of the
contract .The party may fail to perform a minor term
of the contract that does not significantly impact the
other contract terms. A minor breach is typically
something insignificant such as a failure to fulfill a
small detail of the contract.
 Defence to Breach of Contract
Frustation of Contract: Mistakes in Contract:
A contract is frustrated when it becomes
impossible to perform due to some events one that Mistake is an error in concerning certain
isn't the fault of any of the parties, and that they aspects. It causes one party or both parties to
couldn't reasonably have predicted .If this happens, enter into a contract without understanding
the contract is declared invalid, and the parties to it the obligations or results.
no longer have to perform their contractual Three broad categories of mistakes:
obligations.This means that frustration of contract  Common Mistake
causes a contract to end immediately, and all parties  Mutual agreement mistake
are discharged from their future obligations.  Unilateral mistake
Case Study
Case of Air Blue And PIA with CAA
• Air Blue and PIA had entered into a
contract with the CAA for the provision
of navigational services at the Islamabad
airport. The CAA failed to fulfill its
obligations under the contract, which led
to disruptions in the provision of services
to Air Blue and PIA. As a result, both
airlines filed a lawsuit against the CAA
for breach of contract.
Legal Supports to
Individual
 Legal Consultation and Advice
 Recovery of Damages
 Negotiation Services
 Termination of Contracts
 Drafting Legal Notices
 Recent Legal Developments
1.Dealing with Breach in Commercial Contracts: The case "2021 PLD 57"involving Sadan General
Trading LLC and Trading Corporation of Pakistan, demonstrates the courts' approach to commercial
contract breaches, focusing-on reasonable compensation and the assessment of loss.
2.Breach in Employment Contracts: In 2021 PLC(CS) 711", the Peshawar High Court dealt with
breach of contract in public sector employment, highlighting the applicability of constitutional
jurisdiction in such matters
3.Enforceability of Master-Servant Contracts: In 2020 PLC(CS) 80"(Karachi High Court), it was held
that contracts of personal service cannot be specifically enforced under the Specific Relief Act, 1877. The
court noted that an employer in a private-organization is not obligated to continue employment and can
opt today compensation for breach of contract.
4.Proving Damages: In "2020 MLD 213"(Karachi High Court), the court-highlighted the necessity of
proving damages through positive evidence. This decision underscores the importance of substantiation
in claims for damages under contract law.
 Recent Legal Developments
3.Enforceability of Master-Servant Contracts: In 2020 PLC(CS)
80"(Karachi High Court), it was held that contracts of personal
service cannot be specifically enforced under the Specific Relief
Act, 1877. The court noted that an employer in a private-
organization is not obligated to continue employment and can opt
today compensation for breach of contract.
4.Proving Damages: In "2020 MLD 213"(Karachi High Court),
the court-highlighted the necessity of proving damages through
positive evidence. This decision underscores the importance of
substantiation in claims for damages under contract law.
The Essentials of Breach of
Contract
1.Dealing with Breach in Commercial Contracts(2021
PLD
Practical Implications
Best Practice to avoid Breach of
contract
 Make Your Contract's Phrasing Clear

 Establish Clear Expectations for Fulfillment

 Ensure That the Contract Is Legal

 Do Business with Reputable Professionals

 Clarity of Wording and Language

THANK YOU