Discharge of Contract: Breach

Question 1

breach

Answer 1

Breach = When a party fails to perform an obligation under a contract.

Question 2

effect of discharge by breach

Answer 2

V always be entitled to damages

BUT whether contract will be terminated depends on type of term that has been breached

Question 3

types of breach

Answer 3

1) actual breach
2) anticipatory breach

Question 4

1) actual breach

Answer 4

through:
• poor performance of contract
• where there is performance of contract, but work is done badly or the goods are substandard,
• non-performance: work not done, or goods not provided

Question 5

effect of breach of condition

Answer 5

victim may repudiate (terminate) the contract if they wish and/or sue for damages Poussard v Spiers

Question 6

effect of breach of warranty

Answer 6

victim may sue only for damages and the contract continues (Betinni v Gye)

Question 7

2) anticipatory breach

Answer 7

anticipatory breach = when a party gives notice in advance to the other party that they will not be performing/completing the contract.

Question 8

effect of anticipatory breach

Answer 8

C has a choice either to:
• sue immediately for breach of condition (treat contract as repudiated and/or to claim damages) (Hochester v La Tour)
• wait for the time for performance of the contract and to sue then

if they wait, repudiation and/or damages would be assessed at the time when performance should occur so the loss may have increased & can claim more.
- BUT in time an event may occur which discharges the contract, (e.g. frustration) -> C loses rights under anticipatory breach

Question 9

remedies for breach

Answer 9

1) repudiation
2) damages

Question 10

1) repudiation

Answer 10

C is released from future contractual obligations (no longer bound to perform)

Question 11

2) damages

Answer 11

financial compensation to put C in the position he would have been, had the contract been properly completed.