Termination for Repudiation (1)

Termination for Repudiation (1) - Repudiation occurs where...

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Termination for Repudiation  Repudiation occurs where one of the parties renounces his or her liabilities under a contract, or if he or she evinces an intention no longer to be bound by the contract, or shows he or she intends to fulfill the contract only in a manner substantially inconsistent with his or her obligations and not in any other way: Shevill v Builders Licensing Board. Scope of Repudiation Where an essential term has been breached, it will be unnecessary to consider if the promisor has repudiated the contract because they will be able to terminate for breach of an essential term. However, where the term breached is not essential, the promise will have to establish repudiation before the contract may be terminated. Examples of Repudiation Each case depends on the terms of the particular contract and the surrounding circumstances as to whether repudiation has occurred, however, other cases are useful to argue by analogy. The inability must relate to the substantially whole of the contract, not just a minor part. Repudiation by Words or Conduct Express Refusal Refusal to perform all of the obligations under the contract will amount to repudiation: Hochster v De la Tour. In Hochster v De La Tour, before a contract of employment was due to commence, the defendant told the plaintiff that his services were no longer required, repudiating his obligation. Repudiation may also occur where the promisor refuses to perform some of his or her obligation under a contract, provided the refusal is a sufficiently serious matter: Associated News Papers v Blanc. In Blanc the editor printed the plaintiff’s cartoon, however, not on the first page as agreed.
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