Chat with AIExam 14: Discharge by Performance or Breach
In Re Moore & Co and Landauer & Co a contract was held not to be discharged because the canned food was not packaged as agreed.
(39) 
VerifiedTrue
What is the consequence of a breach of a contractual warranty?
(37) VerifiedA
What is the effect of an anticipatory breach?
(35) 
Answered by Examlex AI CopilotAn anticipatory breach, also known as an anticipatory repudiation, occurs when one party to a contract indicates that they will not fulfill their contractual obligations before they are due to perform. This can be done either through a clear statement of intent not to perform or through actions that make it unmistakably clear that the party will not be able to perform when performance is due.
The effect of an anticipatory breach is significant for both parties involved in the contract. Here are some of the key consequences:
1. **Right to Immediate Action**: The non-breaching party does not have to wait until the performance is due to take action. They can treat the anticipatory breach as an immediate breach and seek remedies for breach of contract, such as suing for damages or seeking specific performance, if appropriate.
2. **Suspension of Performance**: The non-breaching party is generally entitled to suspend their own performance under the contract since they no longer have the assurance that the other party will fulfill their obligations.
3. **Option to Terminate**: The non-breaching party may choose to terminate the contract and seek damages for the breach. This can prevent them from being bound to a contract that the other party has indicated they will not honor.
4. **Mitigation of Damages**: The non-breaching party has a duty to mitigate damages. This means they should take reasonable steps to reduce their losses resulting from the breach. For example, if the contract involves the sale of goods, the non-breaching party may need to find another buyer to avoid further losses.
5. **Demand for Adequate Assurance**: In some cases, if there is a reasonable belief that an anticipatory breach may occur, the concerned party may demand adequate assurance from the other party that they will perform as agreed. If such assurance is not provided within a reasonable time, this may be treated as an anticipatory breach.
6. **Reliance Damages**: If the non-breaching party has incurred costs in reliance on the contract being fulfilled, they may be able to recover these reliance damages from the breaching party.
7. **Loss of Contractual Benefits**: The breaching party loses the benefits they would have received had they performed the contract as agreed.
8. **Reputational Damage**: The party that commits an anticipatory breach may suffer reputational damage, which can affect their business relationships and opportunities in the future.
It's important to note that the specific effects and remedies available can vary depending on the jurisdiction and the terms of the contract. Parties dealing with an anticipatory breach should consult with legal counsel to understand their rights and obligations under the law and the contract.
The general rule is that a contract is discharged by performance only where the parties have performed their obligations exactly as they are set out in the contract.
(40) Given the more flexible attitude that has emerged from the courts in respect of certain aspects of contract law is it right that a contract can still only be discharged by performing obligations to the letter of the agreement?
(39) What is the meaning of the doctrine of substantial performance?
(42) Where one party prevents the other from completing the obligations under an entire contract, the party who has partly performed will be able to recover on what basis for the work already done?
(37) Which of the following statements on the difference between termination and rescission for breach of contract is false?
(35) A severable contract is useful because it permits a party who has failed to complete their obligations a claim for what has been done.
(31) Terms implied by the Sale of Goods Act are categorised as conditions and warranties.
(36) Which of the following cases involve an acceptance of partial contractual performance?
(33) A repudiatory breach of a contract will usually bring a contract to an end whether or not that is the intention of the parties.
(36) Generally, a party who has failed to fully perform all obligations may not claim for having fulfilled any obligations.
(33) When one party indicates to another that they do not intend to perform their outstanding obligations under a contract this is referred to as what?
(38) If the victim of a repudiatroy breach does not repudiate a contract then they will be deemed to have done what?
(31) Agnes has a contract to produce business cards for Yosef, but before production starts Yosef notifies her that he no longer requires the cards. Which of the following actions she is not entitled to follow?
(32) How do the Principles of European Contract Law deal with issues of non-performance?
(39) Intermediate terms could be regarded as bringing about uncertainty. In which contracts have the courts sought to avoid this uncertainty and how has this been achieved?
(39) 
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