Breach of Contract

A contract is a legally enforceable agreement, between two or more persons, to do or forebear from doing certain specified acts. For example, an insurance policy, an agreement to purchase and sell land, and a car lease are all contracts.
In order for a contract to be valid and legally enforceable, certain essential elements must be present. A non-exhaustive list includes capacity (the ability of the parties to properly comprehend the nature and effect of their actions), consensus ad item (a requirement that the parties share the same view of what rights and obligations will arise) and consideration (mutual inducement; that is, an exchange of rights or benefits).

Where one or more terms of a contract are broken, the innocent party may well be entitled to an award of damages. In awarding damages for breach of contract, the courts endeavour to place the wronged party in the same position as he or she would have been in if the contract had been performed, so far as this can be done by a monetary award. Alternatively, in certain unusual circumstances, the innocent party may be able to obtain an order for "specific performance". In such cases, the court will direct the party in breach to fulfill its contractual obligations.

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