First Principles of Business Law

Performance and breach of contract

4. Establishing a breach of contract

4.9. The risk of relying on anticipatory breach

 

 

 

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

In July, A, the owner of a sports stadium, agrees to pay $10,000 to B, a turf specialist, to lay 1,000 square metres of new turf in the stadium in time for a football match on September 15th. In late August A asks B when he will begin laying the turf. B says, "There's plenty of time". A disagrees, believing turf needs at least two weeks to settle. He tells B the contract is terminated on grounds of anticipatory breach and contracts with another supplier.

In these circumstances, is A taking an unwise risk by terminating B's right to perform?

(a) Yes. If it turns out that A cannot establish an anticipatory breach by B, A's termination of B's right to perform is itself a breach of contract.

(b) No. As long as A believes there is an anticipatory breach by B, he is justified in terminating performance of the contract.

 

 

 

 

 

 

Page 1 2 3 4 5 6 7 8 9 10
Go to the next topic Go to the previous topic Go to the list of topics Choose another module