Cancellation of a contract

Question 1

Repudiation

Answer 1

Requires unequivocal evidence of an intention, by words or by conduct, not to perform. It can occur during performance or it can be anticipatory

Question 2

Anticipatory repudiation

Answer 2

occurs when
- one party clearly informs the other that the contract will not be performed
- that party acts in such a way that it may reasonably be concluded they have no intention of fulfilling their obligations

Question 3

Hochster v De La Tour

Answer 3

De La Tour engaged Hochster as a courier. Before he started work, they wrote to him advising he was no longer required. Hochster brought action whilst De La Tour argued there was no breach as the contract hadn’t started yet.
Held: the notice was clear anticipatory entitling Hochster to damages. Where one party communicates their clear intention not to perform the contract, the innocent party need not to wait until the breach has occurred.

Question 4

s41 rules applying to cancellation

Answer 4

Cancellation must be known to the other party before it took affect unless,
- it was not reasonably practicable to communicate with the other party
- where the party cannot reasonable expect to receive notice because of its conduct in relation to the contract