Anticipatory breach

Question 1

Actual or Anticipatory breach?

Answer 1

Actual Breach = Breach which occurs at time of or during performance
Anticipatory Breach = Where party gives notice in advance that he will not be performing/ completing contract
-Can be express or implied if it led other party to reasonable conclusion
-Uncertainty or unlikelihood not allowed

Question 2

Courses of action after anticipatory breach

Answer 2

(Hochester v de la Tour)
a. Sue immediately for breach of condition
-must take reasonable steps to mitigate loss
b. Wait for time of performance and sue for actual breach
-loss may increase, but carries risk of frustration

Question 3

Hochester v de la tour

Answer 3

a party can sue for anticipatory breach of contract as soon as the other party repudiates the contract, even before the date of performance.

Question 4

Frost v Knight

Answer 4

Fiancee sued D even though actual breach had not occured