Let’s say you hired a freelancer to design a logo for your startup, paid the advance, and waited weeks — but they didn’t deliver.
You’re frustrated, maybe even angry, and wondering, “Can I do something about this?” The answer is yes, but before jumping into legal action, it’s important to pause and understand whether a legal breach has truly occurred — and what kind.
A breach of contract under Indian law happens when a person fails to perform their obligation, does something against the terms of the agreement, or clearly indicates they won’t perform at all.
This is covered under Section 39 of the Indian Contract Act, 1872, which allows the non-breaching party to terminate the contract and, in many cases, seek compensation.
Not all failures amount to a breach though. Courts look at the seriousness of the failure, the intention behind it, and the actual damage caused.
For example, a one-day delay in delivering work might not be a serious breach unless the contract made that timeline absolutely critical. But a complete refusal to do the work? That’s more likely to be treated as a breach.
To get a clearer picture, it helps to understand the different kinds of breaches:
| Type of Breach | Meaning | Example |
|---|---|---|
| Minor Breach | A small failure that doesn’t defeat the overall contract | A service delivered late by 2 days |
| Material Breach | A serious failure that defeats the core purpose | No delivery after full payment |
| Anticipatory Breach | The other party says they won’t perform, even before the due date | “I’ve changed my mind, won’t do it anymore” |
Once you know what type of breach you’re dealing with, it becomes easier to decide the next steps. If the agreement was in writing and well-drafted, proving the breach is much simpler.
But even if it was verbal, you may still have options — especially if you have messages, receipts, or witnesses to support your side.
If you’re unsure whether your agreement is enforceable, this might help: What Makes a Contract Legally Binding in India?
Before heading to court or even hiring a lawyer, you should start by gathering all your documents and communication. Contracts, emails, chat screenshots, payment slips — all of this becomes important when proving that a contract existed, what the terms were, and how they were broken.
If your contract was made informally, you may still have rights. Read: Verbal vs Written Agreements – What Holds Up in Court?
Once you’ve identified that a breach has occurred and you’ve gathered your documents, the next step is action — but action taken smartly, not emotionally.
The Indian legal system allows you to respond, claim compensation, or even enforce the contract — depending on the nature of the breach and what you want as a solution.
If the breach is clear and serious, you can start by sending a legal notice. This is a formal letter, usually sent through a lawyer, that notifies the other party of the breach and demands a resolution — whether that’s payment, performance, or cancellation.
A legal notice often works as a pre-litigation warning, giving the defaulter a chance to settle before you initiate formal proceedings.
Though not always mandatory, sending a notice helps create a record of your efforts to resolve the matter. It also shows the court, if it comes to that, that you acted fairly and transparently.
If that doesn’t work, you can consider legal remedies available under the Indian Contract Act, 1872. Under Sections 73 and 74, you’re entitled to claim compensation for any loss or damage caused by the breach.
If the contract had a penalty clause, courts may grant reasonable compensation, even if actual loss isn’t proven.
There are also other remedies:
| Legal Remedy | What It Means |
|---|---|
| Damages | Monetary compensation for losses |
| Specific Performance | Court orders the other party to fulfil the contract |
| Rescission | Cancelling the contract and restoring both parties |
| Injunction | Court order to stop the other party from doing something |
Some breaches are best resolved through negotiation or mediation, especially when you want to maintain a relationship or avoid court delays. But for serious cases, civil courts or commercial courts are available — and often necessary.
To understand how to exit a contract properly without causing trouble, read: How to Cancel a Contract Without Getting Sued
FAQs
1. Can I claim damages even if there’s no written contract?
Yes, if you can prove the agreement and the loss, even verbal contracts may be enforceable.
2. What if I sent money but didn’t get the service?
You can claim refund and damages under Section 73 for loss caused due to breach.
3. Is sending a legal notice compulsory?
Not in all cases, but it’s strongly recommended for civil disputes.
4. Can I ask the court to force the other party to perform?
Yes, through a remedy called specific performance — often used in real estate or unique service contracts.
5. How long do I have to file a breach of contract case?
Generally, 3 years from the date of breach, under the Limitation Act, 1963.
