Discharge by Breach Flashcards
What is discharge by breach?
When a party fails to perform their contractual obligation
What happens if an obligation is breached?
V will always be able to claim damages
What are the two forms of breach?
Actual breach
Anticipatory breach
What is actual breach?
Where the breach has happened
Party totally failed to perform/partially failed to perform
What are the 3 options a V can take for actual breach?
Continue with contract and sue for damage
Repudiate
If condition - can repudiate/ repudiate and sue
What happens if a party withdraws from a contract and the alleged breach doesn’t meet any of criteria above?
They’re in breach of contract
What happened in Rice v Great Yarmouth?
Consequence of breach are dependant on term broken (if it’s a condition or warranty/inominate term)
Unsuccessful claim as warranty was breached
What is an anticipatory breach?
Party gives advance notice that they won’t be fulfilling contractual obligations
What options does the V have for anticipatory breach?
Sue for breach immediately
Wait until when the contract should have been fulfilled and sue then
What is suing for breach immediately?
If party leads other to believe they won’t fulfil their obligations, contract is repudiated
Geden Operations v Dry Bulk Handy Holdings
If unsure whether party will fulfill obligations, won’t suffice so contract continues
What happened in Hochster v De La Tour?
Agreed to be courier but no longer needed
C entitled to damages, C doesn’t have to wait until there’s a breach before they sue
What is waiting until when contract should have been fulfilled and sue them?
Dangerous strategy, if innocent party knows the breach is coming, if something happens between when notified and actual breach, could suffer more of a loss
What are some remedies for anticipatory breach?
Damages
Repudiation
If condition breached - claim for both
If warranty breached - just damages
What are some remedies for actual breach?
Damages
Repudiation
