Breach (actual and anticipatory) Flashcards
What is meant by a breach of contract?
-one party to the contract fails to perform all or part of their obligations
-innocent party can sue for damages
Structure for breach of contract?
- Outline breach
- Actual/ anticipatory
- Whats been breached?
- Remedies
What happens if there is a minor breach? (warranty- minor term)
-continue but can claim for any damage/loss.
What happens if there is a serious breach? (condition-important term)
-Innocent party can end contract + claim damages
What happens if there has been a breach of an inominate term?
-depends on whether the term is considered a condition or a warranty.
Which 3 circumstances give rise to a breach of contract, which allows the innocent party to terminate?
- Renunciation
- Impossibility
- Total/partial failure
What is meant by renunciation?
-rejecting to carry out contract
-i.e not paying bill on due date.
What is meant by impossibility?
-because of an action by the party carrying out alleged breach.
-i.e illness.
What is meant by total/ partial failure of performance?
E.g. delivering defective goods.
What is meant by an actual breach?
One party/ both parties fail to perform their side of the contract
What can the c claim if there has been an actual breach?
-damages
-repudiation- ending the contract depends on the type of term that has been breached. (condition/warranty)
What is meant by an anticipatory breach?
-one party gives notice in advance that they will not be completing/ performing the contract.
Which cases go with an anticipatory breach?
-Hochster V De La Tour
-Avery V Bowen
Hochster V De La Tour
-told before tour company no longer needed him
-can claim straight away or wait until breach- no need to wait.
Avery V Bowen?
-may be a good idea to repudiate- just in case a frustrating event may occur.
What can the C claim when there is an anticipatory breach?
-repudiation
-damages (immeadiately or at time to claim damages).
What is meant by a repudiatory breach?
-Where a party makes it clear they no longer wish to be bound by the contract
-expressley or by conduct
Which case outlined that courts are reluctant to use repudiatory breach?
Woodar Investments Ltd V Wimpey construction ltd
Woodar investments Ltd v Wimpey construction ltd?
repudiatory breach- should only be used… in clear cases of refusal, in a matter going to the heart of a contract, to perform contractual obligations.
What happens if there has been a breach of an inominate term?
-depends on whether the term is considered a condition or a warranty.
