discharge by breach Flashcards
(10 cards)
What is discharge by breach?
When a party fails to perform his obligations under a contract, that party may be liable for breach of contract.
The victim will always be entitled to damages, but depending on the type of breach will depend on whether the contract is terminated
What is an actual breach?
> a breach of condition, warrant, or an innominate term
What does the breach of a condition allow to the innocent party?
repudiation and/or claim damages
What does a breach of warranty allow the innocent party?
only damages
What does a breach of an innominate term allow the innocent party?
depends on whether it is being treated as a condition or a warrant
What is an anticipatory breach?
when one party gives notice to the other party that they will not be completing the contract
When may the innocent party sue for an anticipatory breach?
Either sue immediately for a breach of a condition or wait until the breach happens and then sue
Hochester v De La Tour
he was hired to work but then was told he wasn’t needed, he was advised to sue immediately
When can repudiation occur?
if one party to a contract leads the other party to the reasonable conclusion that they do not mean to carry out the contract, thats repudiation
What happens if the victim doesn’t sue immediately for an anticipatory breach?
Something may happen while waiting that means they cant sue