Breach Flashcards
- A Contract can end in various ways…
A Contract can end in various ways (PERFORMANCE AND FRUSTRATION), and breach. When a party fails to perform their obligations under a contract, that party may be sued for breach of contract. There are two types – ACTUAL and ANTICIPATORY.
- ACTUAL Breach is when…
ACTUAL Breach is when a party actually fails to perform their obligations under the contract.
- A repudiatory breach of contract is a breach which is…
A repudiatory breach of contract is a breach which is so serious that it effectively renders the contract useless and therefore gives the innocent party the option to terminate (Hong Kong Fir Shipping v Kawasaki).
- Repudiatory Breach can occur in three ways…
Repudiatory Breach can occur in three ways: a breach of condition (Poussard v Spiers), a refusal to perform the contract, or a serious breach of an innominate term that would be considered a breach of condition.
- If a Repudiatory Breach is established, the other party who is not in breach may…
If a repudiatory breach is established, the other party who is not in breach may terminate the contract and claim damages or continue the contract and claim damages
- If a Repudiatory Breach is established, the other party who is not in breach may…
If a repudiatory breach is established, the other party who is not in breach may terminate the contract and claim damages or continue the contract and claim damages
- If there is actual breach of a warranty…
If there is actual breach of a warranty, the claim is limited to damages (Bettini v Gye).
- An Anticipatory Breach occurs when a party to a contract gives advance notice to the other party that they will not be performing or completing the contract. The innocent party in this situation has a choice…
(a,b,c)
An Anticipatory Breach occurs when a party to a contract gives advance notice to the other party that they will not be performing or completing the contract. The innocent party in this situation has a choice:
a) To Sue Immediately, (Hochster v De La Tour) for breach of a condition to put them in the same position they would have been in had the contract been performed. They must mitigate the loss.
b) To Wait for The Time Agreed, for performance of the contract and sue if performance does not take place then. Damages are assessed at the time when performance should occur, loss might increase due to a change in market factors and C may lose their right to claim (Avery v Bowden).
c) Perform the contract anyway (White & Carter v McGregor) and claim for the value of the remaining contract.
- The Victim may also Repudiate (End) The Contract under…
The victim may also repudiate (end) the contract under anticipatory breach. They would no longer be bound to perform any obligations under the contract.
- Alternatively, an event may occur…
Alternatively, an event may occur which discharges the contract, such as frustration, for which there are different remedies.
- Here
