BBG 231 Lecture Notes - Lecture 17: Anticipatory Repudiation, Tunxis Community College, Specific Performance
6 Jan 2021
School
Department
Course
Professor
Tunxis Community College
Business Law
Notes
● Contractual Breach and Remedies
o One of the major purposes of a contract is to provide a remedy for the innocent party
if he/she is injured as the result of a contractual breach
o Materiality: A breach of a contract occurs when a party fails to perform one of the
duties or conditions of the agreement. If the breach is material or total, the innocent
party may rescind the agreement and sue for damages. If the breach is partial, the
innocent party may not rescind the contract and must still perform his/her promise –
the remedy is to bring an action for damages caused by partial breach.
o A material breach is one that goes to the (what is ?essence of the contract. Whether
or not a breach goes to the essence of the contract is a matter for the court to
determine from the intentions of the parties. (performance can be done separately) or
entire (performance are dependant upon each other). Whether or not the contract is
servable or entire is again determined the finding of the court as the intentions of the
parties. (Just put intentions in the contract)
o Anticipatory Repudiation: Occurs when one of the parties in clear and unequivocal
terms indicated that he does not intend to render the contractual performance when it
is due ( I’m repudiating the contract in advance )
o As a general rule, the doctrine of anticipatory repudiation only to executory bilateral
contracts
o Innocent party has three options:
▪ (1) sue immediately for the breach
▪ (2) do nothing until the time for the performance arrives and then seek
damages
▪ (3) rescind the contract and recover the value of any performance rendered by
him/myself
o May be withdrawn at any time before performance is due, provided the innocent party
has not yet treated the repudiation as a breach
● Remedies
● (Recovering of) Money Damages
1. Compensatory and Nominal Damages: Actual or compensatory damages is an
amount that places the injured party in the same position he/she would have been if
there had not been a breach, including any damages that was the natural and probable
consequence of the breach- however, that (consequence damages ) = may/can not be
Document Summary
If the breach is material or total, the innocent party may rescind the agreement and sue for damages. If the breach is partial, the innocent party may not rescind the contract and must still perform his/her promise the remedy is to bring an action for damages caused by partial breach. A material breach is one that goes to the (what is ?essence of the contract. Whether or not a breach goes to the essence of the contract is a matter for the court to determine from the intentions of the parties. (performance can be done separately) or entire (performance are dependant upon each other). Assessed against a defendant beyond that amount necessary to compensate the plaintiff for the injuries suffered by him/her. Awarded in civil cases when there is malice or vindictive behavior shown on the part of the defendant. Awarded in addition to any compensatory or normal damages.
