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First Principles of Business Law |
| Remedies for breach of contract |
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4. Termination of performance |
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4.8. Anticipatory breach |
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In January, B hires a ship from A to carry a cargo of wheat in March from Australia to Singapore. The agreed price of this charter is $10,000. In February, B tells A that he can't find a buyer for the wheat and has decided not to send it to Singapore. He says he will not complete his contract with A. A tells B that as far as he is concerned, the charter of the ship remains valid and he expects to be paid. Then, at the end of February the price of fuel oil rises sharply. At the same time B finds a buyer for his wheat. B tells A that he is ready to load, but A, who would now lose money on the contract, says that he has now decided to accept B's earlier repudiation of the contract. |
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