Exercises · Q4
Q.Distinguish between actual breach and anticipatory breach of contract.
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Start your 14-day free trial to unlock the full solution →| Basis | Actual Breach | Anticipatory Breach |
|---|---|---|
| Timing | Occurs at, or during, the time fixed for performance | Occurs BEFORE the time fixed for performance |
| How it happens | Party simply fails/refuses to perform when due, or performs only partly and stops | Party expressly declares they will not perform, or does an act (e.g. selling the promised goods elsewhere) making future performance impossible |
| Aggrieved party's options | Sue immediately for the breach that has already occurred | May treat the contract as discharged at once and sue immediately, OR wait until the due date, keeping the contract alive |
| Example | A fails to deliver goods on the agreed delivery date | A tells B, two weeks before the agreed delivery date, that he will not be delivering the goods after all |
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