Breach

• Discharge by breach occurs when a party fails to fulfil their contractual obligations - if an obligation is breached then V will always be able to claim damages
• There are two forms of breach:

  1. Actual breach - the breach has actually happened
  2. Anticipatory breach - where you can see that the breach is going to happen but it hasn't happened yet
• Actual breach - The innocent party has three options:

  • 1. Continue with the contract and sue for damages
  • 2. Repudiate from the contract
  • 3. Repudiate and sue for damages
  • Repudiating/repudiating and suing is available if the breach is of a condition
  • If a party withdraws from a contract and the 'breach' doesn't meet any of the above criteria, they will be in breach of contract
  • Rice v Great Yarmouth - Consequences of the breach are dependent on the term broken
• Anticipatory breach

  • The party gives advance notice that they will not be fulfilling their contractual obligations, the innocent party has two options:
  • 1. Sue for breach immediately - If a party leads the other to believe that they won't perform their part of the contract, the contract is repudiated - Hochester v De La Tour
  • 2. Wait until when the contract should have been fulfilled then sue - This may cause the innocent party to suffer even more of a loss
• Damages

  • Actual breach - Damages and repudiation
  • Anticipatory breach - Damages and repudiation (If a warranty is breached the just damages, but if a condition is breached then C can claim for both)