Question

When a party to the contract repudiates his liability under the contract or makes the performance of the contract impossible before the date of performance. This is called _______________

• A. Actual breach
• B. Attempted breach
• C. Possible breach
• D. Anticipatory breach

Answer 1

The correct option is D Anticipatory breach

A breach of contract can be defined as broken promise, because of someone's failure to fulfill any term of a contract without a legitimate, lawful excuse. Under the Contract law of India, there are generally four kinds of breach of a contracts:

• Minor or partial breach: when one party doesn't do what the contract states he or she is supposed to do. You may be able to sue him or her, but only for “actual damages.”
  
• Material breach: when one party doesn't do what it says on the contract, thus causing it to be destroyed and allowing that party to be liable for breach of contract damages.
  
• Fundamental breach: when one party can sue the other party for breaking the terms, and potentially end the contract.
  
• Actual breach: when one party doesn't do what the terms said he or she was going to do by the due date.
  
• Anticipatory breach: when one party stops fulfilling his or her part of the deal, which makes the other party believe the agreed upon details will remain incomplete. The breaching party can be sued and the contract can be terminated by the other party.