discharge by breach Flashcards
What is a discharge by breach?
When a party fails to perform his obligations under a contract, that party may be liable for breach of contract
What is an actual breach?
> a breach of a condition, a warrant or innominate term
What can the party that suffers an actual breach get?
- if there is a breach of condition they can repudiate and/or claim damages
- breach of warranty only allows damages
- breach of an innominate term depends on whether it is being treated as a condition or a warrant
What is an anticipatory breach?
When one party gives noticed to the other party that they will not be completing the contract
When can the innocent party sue for an anticipatory breach?
They can either sue immediately for a breach or wait until the performance does not take place
Hochster v De La Tour
he was hired to work but they was told he wasn’t needed anymore, he was advised to sue immediately
When is an anticipatory breach allowed?
If one of the parties to a contract, either expressly or by conduct, leads the other party to the reasonable conclusion that they do not mean to carry out the contract, this amounts to repudiation.
Why should the victim usually sue immediately?
If the victim chooses not to sue immediately they can sue when there is an actual breach but something may happen in this period of time which means they can no longer sue at all.
