An anticipatory breach occurs when a party to a contract gives notice in advance to the other party that they will not be performing/completing the contract. The claimant in this situation has a choice either to sue immediately for breach of a condition (ie. to treat the contract as repudiated and/or to claim damages) or to wait for the time for performance of the contract and to sue them.
Hochster v de la Tour (1853):
- Claimant agreed to work for Defendant as a courier on a tour to start in June
- D told C he no longer required C's services in May
- C entitled to sue D immediately - did not have to wait for actual breach
- Principle: 'anticipatory breach takes place before the due date for performance and allows the claimant to take legal action for the breach immediately without waiting for the due date to see if performance does unexpectadly take place then'
Comments
No comments have yet been made