Anicipatory Breach of Contract Essay

808 WordsSep 3, 20134 Pages
Q. ANTICIPATORY BREACH OF CONTRACT: When a party to a contract refuses to perform his part of the contract before the actual time of the performances of contract is due, it is called an anticipatory breach of contract. Anticipatory breach of contract may be 1. By repudiation of the contract: When a party communicates his inability to perform his part of the contract before the fixed times for the actual performances is due, he is said to have expressly repudiated the contract. 2. By impossibility of performances: When the breach takes places by either party to the contract by his own voluntary act, which makes performances of the contract impossible anticipatory breach of contract is committed by impossibility of performances. In case of anticipatory breach, the aggrieved party has the following remedies. 1. He may elect to rescind the contract, e.g. treat the repudiation as an immediate breach putting an end to the contract and immediately sue for damages or. 2. He may treat the contract as still operative and subsisting and wait for the time of performances when the contract is to be executed and then hold the other party responsible for all the consequences of non performances. In this case, the contract remains operative for benefits of the both the parties. Anticipatory Breach of Contract: It occurs when prior to the due date of performance, the promisor absolutely refuses or disables himself from the performance of his obligations. In other words, it is a declaration by one party of his intention not to perform his obligations under the contract. Thus, the anticipatory breach is the premature destruction of the contract, i.e., the repudiation of the contract before due date of performance. Example: X contracted to supply to Y 100 pieces of spark plugs on 15th December 2005. But before the due date of performance (i.e., 15th December), X informed

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