Please enable JavaScript.
Coggle requires JavaScript to display documents.
DISCHARGE - Coggle Diagram
DISCHARGE
-
-
-
4. DISCHARGE BY BREACH
Identify breach:
- Breach of warranty / innominate term treated as such = damages only
- Breach of condition / innominate term treated as such (repudiatory) = damages + right to election
Anticipatory breach = party indicates they will NOT perform contractual obligations in advance of the date for performance.
Effect of repudiatory breach1. ELECT TO TERMINATE Ends all primary + unperformed obligations of both parties
- Notification is required > risky for commercial contracts if they are wrongfully terminated as it can lead to damages claim against the,
- Entitled to damages from breach + loss of contract
- Must mitigate loss
Effect of repudiatory breach2. ELECT TO AFFIRMContract survives + rights of innocent party are preserved = right to charge the contractual charges arises OR debt from unperformed obligations
- Must be unequivocal commitment to continue
- Contractial obligations remain
- Entiled to damages
- Must mitigate loss
Limitation of affirmation
- C must not require D's cooperation to fulfil their obligations if they want to claim contract price
- IF D does not want to perform = D must show that damages would be adequate remedy and C has no legitimate interest in affirming contract so would be unreasonable
-
-