Cards (10)

  • Breach of a condition in a contract, known as a repudiatory breach, will end the contract; breach of warranty, however, won't end the contract
  • Actual breach occurs when there is no notice, like a person not turning up or delivering on the agreed day, as seen in Poussard v Spiers (opera singer failed to turn up)
  • Anticipatory breach is when one party informs in advance that they won't fulfill the contract, as in Hochester v De La Tour ('2 months in advance, don't need you anymore')
  • In case of an anticipatory breach, the innocent party must choose to wait and see if the breaching party fulfills the contract or decide to break the contract, but cannot do both; if they wait, they lose the right to claim
  • Avery v Bowden: When a contract is broken, the court can provide monetary compensation and the innocent party can repudiate, ending the contract
  • Conditions in a contract, like paying employees, are crucial; breaching a condition can end the contract, as seen in Poussard case
  • Warranty terms are less critical; breaching a warranty leads to compensation but not the end of the contract, as in Bettini v Gye where missing rehearsals led to a fine but not termination
  • Innominate terms are decided by the court based on the consequences of the breach
  • In Hong Kong Fir Shipping, the ship not being seaworthy led to payment for using the ship, even though the contract stated it was seaworthy
  • To terminate a contract, the innocent party must communicate their wish to the other party, as in Vitol v Norelf