Breach of Contract Flashcards
What is a breach of contract?
One party fails to fulfil their obligations. Repudiation depends on the term that is broken
What is a repudiatory breach?
A serious breach, breach of a condition or serious breach of an innominate term, due to refusal to perform
What is the remedy for a repudiatory breach?
The innocent party can terminate and claim damages, or continue and claim damages
What is an anticipatory breach?
The party gives an advanced notice that they will not fulfil obligations. The innocent party can:
a. Sue immediately; or,
b. Wait for a breach
What was held in Hochster v De La Tour?
An anticipatory breach is useful as they can treat the contract as repudiated immediately and do not have to wait for the breach
What was held in White and Carter v McGregor?
Claimants could recover the contract price and didn’t need to mitigate loss as they didn’t need to accept the anticipatory breach
What case can be used to set out the law on anticipatory breach?
Geden Operations v Drybulk Handy Holdings
What are the remedies for an anticipatory breach?
Damages can be claimed immediately to put C back in position they would be in if the contract had been completed.
Or depending on the term, D may repudiate