Breach

Question 1

What are the types of Breach?

Answer 1

1. Anticipatory Repudiation
2. Major Breach
3. Minor Breach

Question 2

What is Anticipatory Repudiation?

Answer 2

Common Law: A promisor clearly indicates that it will not perform prior to the date that performance is due

UCC: Clearly refuses to perform OR fails to provide timely adequate assurance

Question 3

What can a non breaching party do if there is Anticipatory Repudiation?

Answer 3

1. Treat the repudiation as a breach of contract and sue immediately (but must wait until the timeline of the contract is complete)
2. Suspend own performance and demand performance
3. Cancel the contract

Question 4

When can a promisor retract their Anticipatory Repudiation?

Answer 4

Common Law: Can retract repudiation until (1) Acts in reliance (2) Accepts the repudiation or (3) Has already filed an action for breach

UCC: Can retract repudiation until (1) The contract has been cancelled (2) Materially changed position because of repudiation (3) Indicated that there was a though repudiation was final

Question 5

What is a material breach?

Answer 5

When a non breaching party does not receive the substantial benefit of the bargain.

Question 6

What is a minor breach?

Answer 6

When a breaching party has substantially performed, but not fully.