Discharge By Breach

Question 1

Introduction

Answer 1

• Where a party fails to perform contract obligations
• V will always be able to claim damages

Question 2

What is the first type of breach?

Answer 2

ACTUAL BREACH : where the breach has actually happened
1. Continue and sue for damages
2. Repudiate from contract
3. Repudiate and sue for damages

However, if party does any of the above and breach doesn’t meet criteria above they will be in breach.

(Rice v Great Yarmouth) : dependent whether it is a warranty or condition

Question 3

What is the second type of breach?

Answer 3

ANTICIPATORY BREACH
- Party gives advance notice it cannot be fulfilled

1. Sue for breach immediately : if party believes they wont perform their part of contract you can end it.
   If they are unsure whether party will fulfill obligations this will not suffice and contract continues
   (Hochester v De la Tour)
2. Wait until contract should have been fulfilled and sue then
   - Dangerous strategy, innocent party may suffer more of a loss if they wait

Question 4

Remedies

Answer 4

Anticipatory : damages, repudiation
- if condition breached can claim for damages and repudiation
- if warranty breached, just damages

Actual breach
- Damages assessed taking into account factors
- Repudiation : V no longer bound