Discharge: Breach Flashcards
What are the steps for discharge by breach?
Define
Actual
Anticipatory
Remedies
What is breach?
Not completing the obligations stated in the contract
What is the distinguishing factor between anticipatory and actual breaches?
Anticipatory breaches happen before or at the time of performance
Actual breaches happen at the time of or during performance
What are the steps for an anticipatory breach?
Define
3 choices: sue immediately, wait, perform their part
Remedies
When can the victim sue for an anticipatory breach?
As soon as they are told that performance will not take place (immediately) or after the time of performance elapses (when the breach actually occurs)
What are the 2 circumstances where a breach is anticipatory?
Renunciation before or at the time of performance.
Impossibility created by their own act before or at the time of performance
Which case shows when the victim can sue for an anticipatory breach?
Hochster v De La Tour
Which case shows that an anticipatory breach occurs when renunciation happens?
Geden v Dry Bulk
What are the victim’s 3 choices of action after an anticipatory breach?
Sue immediately
Wait and see if they perform or not
Perform the contract anyway (ignore breach)
Which case shows the victim can wait and see if the other party perform or not after an anticipatory breach?
Avery v Bowden
Why might it be a bad idea for the victim to wait and see if the other party perform or not after an anticipatory breach?
If they don’t perform, the victim may lose the chance to sue if something else happens e.g. frustration as in Avery v Bowden
What does it mean if the victim chooses to perform the contract anyway after an anticipatory breach?
They perform their part of the contract and are entitled to damages if the other party do not perform their obligation
Which case shows a victim choosing to perform the contract anyway after an anticipatory breach?
White & Carter v McGregor
What are the steps for an actual breach?
Define
Repudiatory vs non-repudiatory
Breach of terms: conditions, warranties, innominate terms
Remedies
What is the circumstance where a breach is actual?
Total or partial failure of performance at the time of or during the performance