Breach

• What is a breach of contract?

  A failure by a party to comply with the contractual obligations, by giving defective, different or no performance at all
• What are the two types of breach?

  Actual and Anticipatory breach
• What is an actual breach?

  When one party fails to perform his obligation correctly
• What is an anticipatory breach?

  When it is clear in advance that one party is not going to complete their side of the contract when the due date arrives
• What options are there for a party facing an anticipatory breach?

  1. Sue immediately: Hochster v de la Tour
  2. Wait until the due date
  3. Complete the contract without cooperation
• What part of a contract can be breached and what does it allow?

  Terms, and it allows an innocent party the right to claim damages
• What are the three types of term?

  Conditions, warranties, and innominate terms
• What is a condition?

  A major term which goes to the root of a contract as it concerns the main purpose of the agreement
• What is the precedent for a condition?

  Poussard v Spiers
• What is a warranty?

  A minor term which is subsidiary to the main purpose of a contract
• What is the precedent for a warranty?

  Bettini v Gye
• What is relevant when deciding whether a term is a condition or warranty?

  The intention of the parties at the time the contract was made: Schuler v Wickman
• What is an innominate term?

  A third term that was created as it is unclear whether a term may be a condition or warranty
• How does an innominate term become a condition?

  If the breach is so serious that it substantially deprives the innocent party of the whole of the benefit
• What is the test for innominate terms?

  The wait and see test
• What is the precedent for innominate terms?

  Hong Kong Fir
• What are the remedies for terms broken?

  1. Condition: affirm or repudiate the contract
  2. Warranty: damages
  3. Innominate: what it later classifies as