Termination - Breach

Define repudiatory breach.

Repudiatory breach arises where one party indicates an intention to no longer be bound by a contract, effectively abandoning its obligations.

What was held in Athlone Rural DC v Campbell & Son [1912]

contractors indicated their willingness to complete the performance with a local authority, who then stated they no longer required their services. The court deemed this to be a repudiation of the contract, allowing the contractors to consider the contract discharged.

Define anticipatory repudiatory breach.

arises when an innocent party is given the right to terminate a contract before it falls due for performance and it is made clear by the other party that they have no intention of performing.

What was held in Hochester v De La Tour [1853] regarding anticipatory repudiatory breach?

the parties agreed in May to start work in June. The defendant terminated the agreement by letter in May. The court held the plaintiff could sue for damages immediately due to breach of existing promise.

Regarding breach of a condition, what was held in Redfern v O’Mahony [2010]?

time was deemed of the essence in the agreement and so the court held failure to meet the completion date led to its lapse rendering it unenforceable.

Regarding breach of condition, what was held in Topalsson GmbH v Rolls Royce Motor Card Ltd [2023]?

the court held time was of the essence was a condition and delay is treated as going to the root of the contract, amounting to breach. This entitles the plaintiff to terminate the contract for repudiatory breach.

Regarding repudiatory breach, what was held in Berber v Dunnes Stores Ltd [2009]?

‘cumulative acts of a party show intention to not perform the contract.’ Here, the defendant’s actions did not show the intention to repudiate.

Regarding repudiation, what was held in Decro-Wall International v Practitioners in Marketing [1971]?

the court held consistent late payments are not sufficiently serious to amount to repudiatory breach. Breach must be so serious as to deprive the injured party of a substantial part of the benefit he is entitled to.