Difference between Freedom of Contract and Right to performance of a Contract

The High Court of Andhra Pradesh in Secretary to Govt. Public Works and Transport Department, Andhra Pradesh and Ors. vs. Adoni Ginning Factory and Ors.[1] noted at para 28-

“Freedom of contract is one thing. Right under a contract or right to performance of a contract is another. It is only the former that is the fundamental right and not the latter. The Constitution is not concerned with rights arising under a contract which are governed by Municipal law, namely, the Contract Act. Right under a contract is not protected under the Constitution since there is nothing like sanctity attached to a contract.”

The alteration of rights accruing under a contract is not an invasion of fundamental right, but would only amount to a breach of contract.

[1] AIR1959AP538

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