Discharge Of Contract - Discharge Due To Breach

Question 1

What is a breach?

Answer 1

-Total failure to perform eg failure to pay
OR
-Failure to do exactly as agreed

Question 2

What are the two types of breach?

Answer 2

-Anticipatory and actual

Question 3

Anticipatory breach

Answer 3

-Before performance is due - D tells C that they aren’t going to do what they promised under the contract

Question 4

Actual breach

Answer 4

-At the time the performance was agreed to happen, d fails to do as agreed or does differently

Question 5

What can happen if the breach is anticipatory?

Answer 5

-C has choice to sue for breach of contract immediately or wait until the time of performance and then sue

Question 6

Case for anticipatory breach

Answer 6

-Hochester v de la tour
-Hochester agreed to work as courier for a tour in June. In may the company told him they didn’t need his services.
-entitled t sue immediately and didn’t have to wait until the breach

Question 7

Benefits/issues with waiting until the contract is due to start before suing?

Answer 7

-May be good as the other party may be able to perform after all
-But risk that something may happen to frustrate contract so innocent party may lose chance of compensation

Question 8

Exam tip

Answer 8

Useful to mention anticipatory breach in problem question. If argue not frustrated, consider if the party who cannot complete the contract stated before the performance date or deadline