First Principles of Business Law

Performance and breach of contract

4. Establishing a breach of contract

4.8. The plaintiff's choices following an anticipatory breach

 

 

 

Read the facts and the question and then choose the best answer.

In July, A, a shipowner, agrees to carry 10,000 tonnes of coal from Freemantle to Osaka for B, an exporter. The contract requires B to load the coal onto the ship before the end of August. On 1 August, B says that he does not intend to load the ship, and says A should find another cargo. A says he will not accept this repudiation of the contract. He says that he will keep the ship ready for loading the coal and will sue for the contract price if the cargo is not sent to him when it is due.

Is A entitled to insist on performance of the contract, notwithstanding B's repudiation?

(a) Yes. It is up to A to decide whether to accept B's repudiation or not. If he wants, A can decide not to act on the anticipatory breach.

(b) No. Once there is a clear repudiation of the contract by B, A cannot insist that he wants the contract to be performed.

 

 

 

 

 

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