Performance of Contracts and Remedies for Breach Essay

Performance of Contracts and Remedies for Breach - Essay ExampleThese include offer and acceptance, vulgar agreement, consideration, competent parties, legality of purpose and proper form. People enter into blesss on a day-to-day foundation garment for various reasons such as trading purposes (Boundy, 2010). An example of a breached contract is that of a car dealer, Mr. Richard, who trade a vehicle from Europe on behalf of Mr. McKenzie. Mr. McKenzie specifies that he wants a Mercedes E200 and pays three quarters of the total address up front with an agreement that the re maining quarter to be paid upon delivery. However, Mr. Richard brings in a Mercedes 200E. some(prenominal) parties have tried all the possible channels to settle the matter, but all is in vain. This makes them chassis to seek legal action to solve the problem. At the end, the court rules in favour of Mr. Mackenzie and forces Mr. Richard to bring the contract to performance as agree. This breaching can be analy sed as below. Performance of a contract occurs when all the footing of a contract are fulfilled, and the contract has settled. Performance can either be complete, substantial or inferior. Complete performance occurs when the contract is discharged. As for substantial performance, the non-breached party can recover from the restoration caused by the other party (Boundy, 2010). In this case, the non breaching party can have three or more options. The root one is to request the contractor to bring the contract to performance. ... Mr. Richard did not bring into performance the contract as agreed there by breeching the contract. Though he brought a Mercedes, it was not as specified in the contract (Goldman and Sigismond, 2010). Breaching of contract occurs when one party of the contract fails to meet part or all of their agreed requirements. A breach can be either actual or anticipatory. An actual breach occurs when a contractor completes the agreed contract partially or does not comp lete at all on the due date. An anticipatory breach occurs when one party communicates to the other well in advance that he exit not fulfill his part of the contract earlier performing it. The non-breaching party is usually at liberty to choose one or more ways through which settlement of damages will take place. The main four types of contract breaches recognized by the law include Minor breach, substantive breach, Fundamental breach, and Anticipatory breach. Damages compensate breaches caused in a contract. There are four main categories of damages. These are compensatory, consequential, liquidated and nominal. Compensatory damages restore the benefit of the agreement. The non-breaching party gets payment, an equivalent of what was to be paid if the contract was full performed. This depends on the contract and the part that underwent breaching. Consequential damages occur because of external circumstances that affect the contract. Liquidated damages are reasonable amounts paid after both parties have agreed in advance before the contract is breached. In nominal damages, the breached party sues the breaching party and is paid some small amount though there is no financial loss (Goldman and