discharge by breach otl

discharge by breach otl - National University of Singapore...

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National University of Singapore Faculty of Law   Law of Contract 2004-2005   DISCHARGE OF CONTRACT: BREACH   B REACH A breach of contract is committed when a party without lawful excuse fails or refuses to perform what is due from him under the contract, performs defectively or incapacitates himself from performance. Treitel. This results in : (1) a secondary obligation to pay damages. See outline on remedies. (2) possible rescission by the innocent party A breach of condition, or breach of an innominate term which substantially deprives the innocent party of the substantial benefit of the contract, allows an innocent party to elect to terminate the contract ab futuro or affirm it. The contract is not automatically terminated. Photo Production Ltd v Securicor Transport Ltd      [1980] 1 All ER 556 (BBF 608,       976) An innocent party who does not accept the repudiation is entitled to continue to insist on performance. White and Carter v. McGregor. To accept the repudiation, acceptance must be clear and unequivocal. Generally inactivity cannot be taken as acceptance of repudiation, however in exceptional cases inactivity may be regarded as acceptance of repudiation. Vitol S.A. v. Norelf Ltd. Once terminated or affirmed, the decision is not revocable. Peyman v. Lanjani. Once the right to elect to terminate the contract is raised, it does not matter for what reasons the innocent party decides to terminate. 1
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Just because an innocent party chooses to affirm a contract upon breach of a term, does not mean he is deprived of the right to terminate upon future breaches of the same term. As long as he gives reasonable notice that the term remains of essence to the contract, future breaches of that term still entitle him to terminate. National Skin
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This note was uploaded on 02/07/2012 for the course LGST 101 taught by Professor Hsu during the Spring '11 term at Singapore Management.

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discharge by breach otl - National University of Singapore...

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