Contract: Breach

Breach of Contract

Define: A breach of contract happens when one party fails to perform their obligations arising under the contract. 

Actual Breach: One party has failed to perform their side of the contract completely. They have performed the contract but not performed as agreed. They have repudiated the contract. 

Pilbrow v Pearless de Rougemont and Co: Held this was an actual breach of contract through non-performance as the agreement was to provide a solicitor was not performed, a legal advisor was used instead. 

Bunge Corporation v Tradax Export SA: Held this was an actual breach due to improper performance of providing 13 days notice instead of the agreed 15. 

Anticipatory Breach: One party gives advance notice that they will not be performing their part of the contract. 

Hochester v De La Tour: Held this was anticipatory breach by giving one months notice that the contract would not be performed. The Claimant can sue for damages immediately. 

Condition: A condition is an integral part of the contract, breach of these means the contract is meaningless and the part can repudiate their obligation and seek damages. 

Poussard v Spiers Pond: Held failing to attend the opera performance was a breach of condition the other party could repudiate.

Warranty: A warranty is a minor term of the contract, even if it is breached the main aim of the contract can still be achieved, parties can only sue for damages. 

Bettni v Gye: Held failing to attend rehearsals was a breach of warranty so only damages were available. 

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