Discharge - Breach Flashcards
General Rule
When one party fails to perform their obligations under a contract, they may be sued for a breach of contract
Actual breach of condition
Right to repudiate the contract (refuse to perform obligations), sue for damages if the breached term goes to root of contract (Schluer v Wickman)
Actual breach of warranty
Sue for damages
Actual breach of innominate term
Right to repudiate if the breach is sufficiently serious to amount to a breach of condition (The Hansa Nord)
What is an anticipatory breach?
When a party is aware the other party will not be performing or completing the contract
Antic - Sue Immediately
Repudiate the contract and claim damages (if it turns out to be a breach of warranty and not condition then they have breached a condition by repudiating the contract) (Hochester v De La Tour)
Antic - wait for time agreed
Then repudiate the contract if it breaches condition, sue for damages if performance was not as agreed
Unlikelihood/Uncertainty rule
Unlikelihood or uncertainty in future performance is not enough to prove anticipatory breach, must make other aware they are not completing (Geden Operations v DHH)
Remedies for breach condition
Repudiate and Damages
Remedies for breach warranty
Damages
Remedies for Anticipatory Breach
Damages (C must mitigate their loses)
OR repudiate contract