Explain The Meaning And Effect Of Breach Of Contract 2 / 4

A breach is where contractual obligations are NOT performed

However, sometimes a person has a legal excuse not to perform the obligation and so this would not be a breach:

These reasons may be:

  1. Impossible performance due to unforeseen event

  2. Performance was rejected

  3. Other party made it impossible

  4. Frustrated contract

  5. Parties agreed non-performance

Effect of a Breach

The breach of a Condition as we know means the injured party can repudiate (rip up) the contract - we call this a repudiator breach

The injured party can choose to repudiate and claim damages

An Anticipatory Breach

Declaration in advance not to do your side if the bargain - or this can be implied even by their actions

This leaves the injured party with a choice:

  1. Treat the contract as discharged and sue now

    Höchster v De La Tour

  2. Complete their end of the contract and then sue in full

    White & Carter v McGregor

So a straightforward Repudiatory breach tends to happen at the time of performance

The anticipatory breach happens before the performance is due

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