Breach of Contract

Question 1

What is a breach of contract?

Answer 1

One party fails to fulfil their obligations. Repudiation depends on the term that is broken

Question 2

What is a repudiatory breach?

Answer 2

A serious breach, breach of a condition or serious breach of an innominate term, due to refusal to perform

Question 3

What is the remedy for a repudiatory breach?

Answer 3

The innocent party can terminate and claim damages, or continue and claim damages

Question 4

What is an anticipatory breach?

Answer 4

The party gives an advanced notice that they will not fulfil obligations. The innocent party can:
a. Sue immediately; or,
b. Wait for a breach

Question 5

What was held in Hochster v De La Tour?

Answer 5

An anticipatory breach is useful as they can treat the contract as repudiated immediately and do not have to wait for the breach

Question 6

What was held in White and Carter v McGregor?

Answer 6

Claimants could recover the contract price and didn’t need to mitigate loss as they didn’t need to accept the anticipatory breach

Question 7

What case can be used to set out the law on anticipatory breach?

Answer 7

Geden Operations v Drybulk Handy Holdings

Question 8

What are the remedies for an anticipatory breach?

Answer 8

Damages can be claimed immediately to put C back in position they would be in if the contract had been completed.

Or depending on the term, D may repudiate