This chapter discusses the law on performance and breach of contact. It covers the order of performance; excuses for non-performance; whether a party who does not perform perfectly can claim payment or performance from the other party; whether an innocent party who has paid in advance can recover his payment in the event of a failure of perfect performance; whether the innocent party can terminate the contract; the effect of a repudiation or a fundamental breach; the effect of discharging the contract for a bad reason, when a good reason also exists; contractual provisions for termination; stipulations as to time; and tender of performance.
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This chapter examines the doctrine of anticipatory breach, which occurs where, before the time comes for A to perform their part of the contract, A declares that A is not going to do so. This repudiation of the contractual obligation is itself a breach of contract. The innocent party may choose to either accept or reject an anticipatory breach. If they accept, the contract is terminated and the innocent party can sue for damages immediately. If the anticipatory breach is rejected, then the contract remains on foot. If the innocent party elects not to accept the breach and to keep the contract alive, then they may proceed to perform their side of the bargain and sue for the contract price. However, it appears that this action for the agreed sum, or action in debt, may not succeed if the innocent party had no ‘legitimate interest’ in taking such steps.
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This chapter examines the doctrine of anticipatory breach, which occurs where, before the time comes for A to perform his part of the contract, A declares that he is not going to do so. This repudiation of the contractual obligation is itself a breach of contract. The innocent party may choose to either accept or reject an anticipatory breach. If he accepts, the contract is terminated and the innocent party can sue for damages immediately. If the anticipatory breach is rejected, then the contract remains on foot. If the innocent party elects not to accept the breach and to keep the contract alive, then he may proceed to perform his side of the bargain and sue for the contract price. However, it appears that this action for the agreed sum, or action in debt, may not succeed if the innocent party had no ‘legitimate interest’ in taking such steps.
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Jack Beatson, Andrew Burrows, and John Cartwright
If one of the parties to a contract breaches an obligation which the contract imposes, that party is in breach of contract. The breach may consist in the non-performance of the relevant obligation, or its performance in a manner or at a time that fails to comply with the requirements of the contract. This chapter sets out the rules governing the discharge of a contract by breach. It shows that the breach may give rise to discharge only if it is sufficiently serious in its effects (a breach which ‘goes to the root of the contract’, or a ‘repudiation’ of the contract) or if it is a breach of a sufficiently serious term of the contract (breach of ‘condition’).
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This chapter examines breach of contract and the remedy of termination. It discusses: (1) what constitutes breach of contract; (2) the types of breach that will entitle a claimant to elect whether to end (terminate) the contract and sue for damages; namely, conditions and innominate terms the breach of which deprive the claimant of substantially the whole benefit expected under the contract; (3) how terms are classified into conditions, warranties, and innominate terms; (4) the nature and effect of terminating a contract; (5) when the claimant can insist on continuing with performance (affirmation) when the defendant does not want to perform the contract; and (4) the additional special remedies available to consumers in certain cases.
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This chapter examines breach of contract and the remedy of termination. It addresses the following questions: (1) What is breach of contract and when does it occur? (2) What sorts of breach will entitle a claimant to elect whether to end (terminate) the contract? (3) What is the effect of terminating a contract? (4) When can the claimant insist on continuing with performance (affirmation) when the defendant no longer wants it? (4) What additional special remedies do consumers have in certain cases?
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This chapter sets out the remedies available to the buyer under a contract of sale. Before the Sale and Supply of Goods to Consumers Regulations 2002, these remedies comprised damages for non-delivery of the contract goods, specific performance, and damages for breach of warranty. In cases of breach of condition, the buyer generally has the right to reject the goods and repudiate the contract. Since implementation of the 2002 Regulations, a buyer who deals as consumer has additional remedies of repair, replacement, reduction in price, or rescission. These additional consumer remedies are discussed after a consideration of the remedies that are available to all buyers, including consumers, beginning with those remedies granted to a buyer where the seller fails to deliver the goods, or fails to deliver on time. Certain consumer contracts entered into after 1 October 2015 are governed by the Consumer Rights Act 2015, which is also discussed.
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This chapter sets out the remedies available to the buyer under a contract of sale. Before the Sale and Supply of Goods to Consumers Regulations 2002, these remedies comprised damages for non-delivery of the contract goods, specific performance, and damages for breach of warranty. In cases of breach of condition, the buyer generally has the right to reject the goods and repudiate the contract. Since implementation of the 2002 Regulations, a buyer who deals as consumer has additional remedies of repair, replacement, reduction in price, or rescission. These additional consumer remedies are discussed after a consideration of the remedies that are available to all buyers, including consumers, beginning with those remedies granted to a buyer where the seller fails to deliver the goods, or fails to deliver on time. Certain consumer contracts entered into after 1 October 2015 are governed by the Consumer Rights Act 2015, which is also discussed.
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Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in White and Carter (Councils) Ltd v McGregor [1962] AC 413. The document also includes supporting commentary from author Nicola Jackson.
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Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in White and Carter (Councils) Ltd v McGregor [1962] AC 413. The document also includes supporting commentary from author Nicola Jackson.
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Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in White and Carter (Councils) Ltd v McGregor [1962] AC 413. The document also includes supporting commentary from author Nicola Jackson.
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15. Breach of contract
Repudiation and the right to terminate
This chapter examines how English law defines breach of contract and what the immediate effect of breach is on the validity of the contract, along with the obligations of the parties under the contract. It first considers the core principles underlying the law’s approach to defining breach before explaining how the courts assess performance and the consequences of breach, with particular emphasis on cases involving repudiation. It then discusses three types or classes of contractual terms: conditions, warranties, and innominate terms. It also looks at how the law deals with situations of anticipatory breach and concludes with an analysis of the scope and limits of the right of a party to terminate the contract following a repudiatory breach by the other party.
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15. Breach of contract
Repudiation and the right to terminate
This chapter examines how English law defines breach of contract and what the immediate effect of breach is on the validity of the contract, along with the obligations of the parties under the contract. It first considers the core principles underlying the law’s approach to defining breach before explaining how the courts assess performance and the consequences of breach, with particular emphasis on cases involving repudiation. It then discusses three types or classes of contractual terms: conditions, warranties, and innominate terms. It also looks at how the law deals with situations of anticipatory breach and concludes with an analysis of the scope and limits of the right of a party to terminate the contract following a repudiatory breach by the other party.
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This chapter focusses on remedies agreed by the parties for breach of contract. Parties may wish to include a term in the contract which dictates what should happen in the event of breach of contract. If the term states that a certain amount of money should be paid upon breach, that term might be valid as a liquidated damages clause or unenforceable as a penalty. If the amount chosen is a genuine pre-estimate of loss, or is ‘commercially justified’, then it is likely to be valid. If the defaulting party had already paid money to the innocent party as a deposit, the innocent party may be able to forfeit that deposit. A term stipulating that specific performance or an injunction will be granted upon breach will not bind the court. However, the court may take into account such a term when deciding whether to exercise its equitable discretion.
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M P Furmston
This chapter discusses remedies for breach of contract. It covers damages (remoteness of damage and measure of damages; mitigation; contributory negligence; liquidated damages and penalties; and deposits, part payments, and forfeitures), specific performance (specific performance a discretionary remedy; the principle of mutuality; and the remedy of injunction), and extinction of remedies (the statutory time limits; effect of defendant’s fraud; extension of time in case of disability; effect of acknowledgement or part payment; and effect of lapse of time on equitable claims).
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Each Concentrate revision guide is packed with essential information, key cases, revision tips, exam Q&As, and more. Concentrates show you what to expect in a law exam, what examiners are looking for and how to achieve extra marks. This chapter focuses on contract law. It discusses the discharge of contracts and the remedies for breach of contract where one of the parties has failed in their contractual obligations. Contracts can be discharged through performance, agreement, frustration, or breach. In the event of frustration, the parties can establish their own remedies or they can rely on the provisions developed through the Law Reform (Frustrated Contracts) Act 1943. Remedies have been established through the common law and equity. Damages are the primary remedy in most cases, but equitable remedies include specific performance, injunctions, and rectification.
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Jack Beatson, Andrew Burrows, and John Cartwright
This Chapter discusses damages and other remedies for breach of contract. It covers the compensatory nature of damages, basis of assessment of damages, causation, remoteness, mitigation, assessment of damages in contracts for the sale of goods, claimants’ contributory negligence, the tax element in damages, interest, and agreed damages clauses (contrasting penalty clauses).
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This chapter focusses on remedies agreed by the parties for breach of contract. Parties may wish to include a term in the contract which dictates what should happen in the event of breach of contract. If the term states that a certain amount of money should be paid upon breach, that term might be valid as a liquidated damages clause or unenforceable as a penalty. If the amount chosen is a genuine pre-estimate of loss, or is ‘commercially justified’, then it is likely to be valid. If the defaulting party had already paid money to the innocent party as a deposit, the innocent party may be able to forfeit that deposit. A term stipulating that specific performance or an injunction will be granted upon breach will not bind the court. However, the court may take into account such a term when deciding whether to exercise its equitable discretion.
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Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in L Schuler AG v Wickman Machine Tool Sales Ltd [1974] AC 235. The document also includes supporting commentary from author Nicola Jackson.
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Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Hong Kong Fir Shipping Co. Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26, Court of Appeal. The document also includes supporting commentary from author Nicola Jackson.
