Discharge of a contract-Breach Flashcards
If a condition is breached, what can the C do?
Repudiate contract
AND/OR
Seek damages
If a warranty is breached, what can the C do?
Seek damages only
When does repudiatory breach of contract occur?
When a party commits a breach of contract that is sufficiently serious that it entitles the innocent party to treat the contract as terminated.
[NOT RED] 3 sets of circumstances giving rise to a breach of contract.
- Renunciation (not doing) by a party of their liabilities under it.
- Impossibility created by their own actions e.g., hairdresser closing when there is appointments
- Total or partial failure of performance, e.g., delivering defective goods.
In what 3 ways can a repudiatory breach occur?
- A breach of contract
- Refusal to perform the contract e.g., delivering goods or carrying out work.
- Sufficiently serious breach of an innominate term, that is, a breach that would be considered a breach of condition.
What is anticipatory breach?
Occurs when a party to a contract gives notice in advance to the other party that they will not be performing/completing the contract.
What can the C do where there is anticipatory breach?
Sue immediately or wait for the time of performance and then sue.
Case for anticipatory breach.
Hochster v De la Tour (1853)
Facts of Hochster.
Hochster agreed to work as a courier on a tour due to start in June.
However, company told him in May that it no longer required his services.
In that situation, he was entitled to sue immediately and did not have to wait until the actual breach of contract, which would have occurred in June
What rights to remedies does the V have where there is an anticipatory breach?
May repudiate the contract under anticipatory breach