DISCHARGE OF CONTRACT-by breach Flashcards
what is meant by repudiatory breach of contract? (1)
this occurs when a party commits a breach of contract that is sufficiently serious that it entitles the innocent party to treat the contract as terminated.
what are the two types of breach? (2)
anticipatory breach
actual breach
what is anticipatory breach? (1)
when a party to a contract gives notice in advance to the other party that he or she will not be performing or completing the contract.
what is actual breach? (1)
where the breach occurs at the time or during the course of performance.
what is meant discharge by breach? (1)
when a party fails to perform his or her obligations under a contract, that party may be sued for breach of contract.
what part of a contract must be breached for the victim to be entitled to damages? (1)
breach of any term of a contract gives the right to claim damages but only a breach of condition gives the right to repudiate the contract and/or sue for damages.
what does the breach of a condition include? (1)
the breach of a condition includes any innominate term where the term is treated as a condition.
what can a breach be? (2)
-breach can be a total failure to perform
-failure to perform in accordance with the terms of contract that could be seen as part-performance.
what circumstances give rise to breach? (3)
-renunciation by a party of his or her liabilities under it (not paying a bill on a due date)
-impossibility created by his or her own act
-total or partial failure of performance (delivering defective goods)
how can repudiatory breach occur? (3)
-a breach of condition
-a refusal to perform the contract
-a sufficiently serious breach of an innominate term (term is considered condition)
what occurs if a repudiatory breach is established? (1)
is a repudiatory term is established, the other party who is not in breach may terminate the contract and claim damages or continue the contract and claim damages.
what case shows expressed termination provisions of a contract? (1)
Stocznia Gdynia SA v Gearbulk Holdings (2009)
what occurred in the case of Stocznia Gdynia SA v Gearbulk Holdings and when was it? (2)
it was established that the contract can be terminated in the event of any of the circumstances set out in the contract. (2009)
what case shows anticipatory breach? (1)
Hochester v De La Tour (1853)
what occurred in the case of Hochester v De La Tour and when was it? (3)
Hochester agreed to work as a courier on a tour, however the company told him a month before that they no longer needed him, he was entitled to sue immediately and did not have to wait until the actual breach of contract. (1853)
