Discharge By Breach

Question 1

Discharge by breach

Answer 1

When a party fails to perform their contractual obligations

Question 2

Two forms of breach

Answer 2

Actual breach- breach has happened

Anticipatory breach- can see that breach is going to happen

Question 3

Actual breach

Answer 3

3 options if the breach is serious (condition)
• continue with contract and sue for damages
• repudiate from the contract
• repudiated and sue for damages

Question 4

Case for actual breach

Answer 4

Rice v Great Yarmouth

Question 5

Anticipatory breach

Answer 5

Where the party gives advance notice that they will not be fulfilling their contractual obligations
2 choices
•sue for breach immediately
•wait until contract should have been fulfilled and then sue

Question 6

Remedies for anticipatory breach

Answer 6

Damages- put V in same position they would have been in had the contract been completed
Repudiation- V is no longer bound by contractual obligations

If a condition is breached, C can claim for both damages and repudiation
If a warranty is breached, just damages

Question 7

Remedies for actual breach

Answer 7

Damages- will be assessed at the time the breach takes place. Court takes into account various factors eg economy when they assess the amount
Repudiation- V is no longer bound by their contractual obligations