MGMT 3100 Chapter Notes - Chapter 13: Syllogism, Expectation Damages, Quantum Meruit
9 Feb 2018
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A breach of any term in a contract entitles the non-breaching party to claim damages. However serious breaches may also discharge a contract and release the non-breaching party from further performance of his or her contractual obligations. To discharge a contract, the breach must undermine the whole contract or a substantial part of the contract; only then is the option to discharge the contract available. The purpose of the contract must be defeated so that performance by the non-breaching party is rendered pointless. Even when a breach is sufficient to discharge the contract, the non-breaching party must choose to treat the contract as discharged and communicate its choice to the breaching party. Even when the non-breaching party would ordinarily have the right to treat its obligations as discharged it loses that option in two situations. The first occurs when the innocent party decides to proceed with the contract and accept benefits under it, despite the breach.
