Discharge by Breach

Question 1

Discharge by breach

Answer 1

Breach of contract can occur by:
-Actual breach - there has been a failure to perform the contract
-Anticipatory breach - one party indicates that they will not be performing the contract

Question 2

Repudiatory breach

Answer 2

-Occurs when a party commits a breach of contract so serious that it entitles then innocent party to treat the contract as terminated

Question 3

How can a repudiatory breach occur ?

Answer 3

-Breach of condition
-Refusal to perform the contract
-Serious breach of an innominate term that would be considered a breach of condition

Question 4

Following an Anticipatory Breach

Answer 4

The innocent party has a choice:
-To sue immediately for breach of a condition, or
-To wait for the time for breach of condition, or contract and to sue if performance does not take place

Question 4

Anticipatory breach - Damages

Answer 4

-The injured party can treat the contract as repudiated immediately and can claim damages.
-An example is Rochester v De La Tour