Breach

• What is a breach of contract?

  Failure to perform contractual obligations
• What happens when a party breaches a contract?

  They fail to perform or perform poorly
• Can both parties be in breach of contract simultaneously?

  Yes
• What are the two types of breach?

  Actual and anticipatory
• What is an actual breach?

  Failure to perform at expected time
• What is an example of actual breach?

  Non-complete or poor performance
• What is an anticipatory breach?

  Refusal to perform before expected time
• What happens in an anticipatory breach?

  One party informs the other of non-performance
• How should you approach a breach of contract question in an application question?

  Discuss breach, define type, apply law, discuss remedies
• What is discharge by breach?

  Termination of contract due to breach
• What are the choices for the other party in an anticipatory breach?

  Sue immediately , wait and see, or perform the contract anyway
• What is the key case for breach of contract?

  Hong Kong Fir Shipping v Kawasaki Kisen Kaisha
• What are the two types of breach and their characteristics?

  * Actual breach: occurs when a party fails to perform their contractual obligations at the expected time, or performs partially or to an unsatisfactory standard.

  * Anticipatory breach: occurs when one party informs the other before the expected performance that they will not be performing their contractual obligations.
• What are the choices for the other party in an anticipatory breach?

  * Sue immediately

  * Wait and see

  * Perform the contract anyway