OCR A2 Law - The Law of Contract - Breach (2)

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  • Created by: Majid
  • Created on: 12-05-13 20:35

Breach (2)

2. Anticpatory Breach: This is where a party shows by words or deeds that they don't intend to carry out a contract. The party can do 1 of 2 things: Sue immediately or wait till the breach occurs and sue then.AO2: A party should ideally sue immediately to avoid any frustrating events.CASE: "Avery v Bonden". In this case defendant agreed to find a cargo for the ship within 45 days but then repudiated the contract. The claimant ignored the repudiation and chose to wait until the end of the 45 day period but a war broke out which frustrated the contract. HELD: Couldn't sue as in frustration "losses lie where they fall" i.e you have no right to payment.

Agreement: If a contract is made via an agreement then it can also be discharged via an agreement.

1. Bilateral Discharge: This is where both parties agree however the contract was in writing. 1. A written contract can be discharged orally if both parties agree; 2. varying the contract can only be done in writing; 3. If the contract needs to be replaced then it also has to be in writing.

2.Unilateral Discharge: This is where one party has performed their part of the contract but the other party still has to perform. N.B. At Common Law P/P of a debt is not good consideration ... Denning developed 'The High Trees Principle' known as the doctrine of promissory estoppel aka the doctrine of waiver.

CASE: "Charles Rickard v Oppenheimer". In this case work was to be completed on a car chassis for 6 to 7 months, but work wasn't completed so defendant agreed to wait 3 months then another 1 month. HELD: If he unilaterally discharged the contract during 4 months of the contract then he would have had to accept it but as it was exteneded for a total of 4 months it acted as a waiver.

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