Discharge by breach

• Actual Breach:

  When a party fails to perform their obligations under a contract, party may be sued for breach. Only breach of condition gives the right to repudiate the contract and sue for damages.
• 3 sets of circumstances giving rise to breach of contract are: (actual breach)

  • renunciation by a party of their liabilities under it
  • impossibility created by their own act
  • total or partial failure of performance
• repudiatory breach - occurs when a party commits a breach of contract that is sufficiently serious that it entitles the innocent party to treat the contract as terminated.
• repudiatory breach can occur in 3 ways:

  • breach of condition
  • refusal to perform the contract
  • sufficiently serious breach if an inonimate term that is a breach would be considered a breach of condition
• Anticipatory Breach: Hochster V de le Tour

  occurs when a party gives notice in advance to the other party tat they will not be performing the contract. Innocent party can either sue immediately or wait for the time agreed for performance and then sue if performance doesnt occur.
• Remedies for breach:

  • if victim claims anticipatory breach, victim may claim damages immediately. Put the victim in the same position they would've been in had the contract been completed. Must take reasonable steps to mitigate losses.
  • if they wait and see if anticipatory becomes actual, damages are assessed at the time when performance would occur.
  • can repudiate contract under anticipatory.
  • breach of condition, claim damages or repudiation.
  • breach of warranty, limited to damages.