Deck 24: Anticipatory Breach of Contract

Question 1

Where there has been an anticipatory breach of contract, the injured party may sue for damages and keep the contract alive (or terminate it, as she thinks fit).

Answer 1

False

Question 2

The concept of anticipatory breach is pragmatically useful because: - Please select all that apply.

A) The breaching party is able to escape her contractual obligations in advance.
B) The injured party does not need to wait for the date of performance to pass before bringing a claim against A.
C) The injured party may be able to reduce her losses to a greater extent, by quickly taking steps to mitigate those losses.
D) The injured party may choose to keep the contract alive and sue for the agreed sum.

Answer 2

A,B,C

Question 3

What are possible justifications for the doctrine of anticipatory breach? Please select all that apply.

A) There is an implied promise to maintain the contractual obligation intact from the making of the contract until it is performed.
B) There is an objectively reasonable inference that the contractual obligation will not be properly performed when due.
C) The innocent party always has a right to terminate the contract and sue for damages.
D) It is justified wholly on pragmatic grounds.

Answer 3

A,B,D

Question 4

If A mistakenly believes he has a right to terminate his contract with B but in fact he does not have that right, he risks being in repudiatory breach.

Question 5

In what circumstances may an innocent party sue for the agreed sum?

A) Where the innocent party ignores the anticipatory breach, and completes performance of her side of the contract.
B) Where the innocent party decides to keep the contract alive, but is unable to continue performing her contractual obligations without cooperation from the other party.
C) Where the innocent party decides to keep the contract alive, and continues performance but does not fulfil her side of the bargain
D) Where the innocent party accepts the breach by suing for damages.

Question 6

A claimant is able to recover the agreed sum even if her conduct was wholly unreasonable.