Common Law Breach

Question 1

Rule Statement

Answer 1

A breach is any failure to render full performance when performance is due

Question 2

Material breach

Answer 2

A material breach is any failure in performance that is so central to the contract and substantially impairs its value (deprives the non-breaching party of their benefit)

Question 3

When a party materially breaches, what can the non-Breaching party do?

Answer 3

Suspend performance and sue for damages

Question 4

Non-Material Breach

Answer 4

a minor/ trivial breach that leaves the non-breaching party with the essential benefit of their bargain

Question 5

Substantial Performance

Answer 5

If the breach is non- material but the breaching party has substantially performed under the contract, the breaching party may recover damages (breach must be minor and cannot be willful)

Question 6

Anticipatory Repudiation

Answer 6

occurs when one party clearly and unequivocally communicates that it will not perform under the contract

Question 7

How can a party repudiate?

Answer 7

1) a party can expressly repudiate by making a clear and definite statement
2) via conduct if it acts in a way that is inconsistent with the intent to perform

Question 8

How can the other party treat repudiation

Answer 8

1) treat the repudiation as an immediate breach by refusing to render performance, terminating the contract and sue for damages
2) delay responding to the repudiation to see if the repudiating party retracts