BU233 Lecture Notes - Lecture 1: Rescission, Opportunity Cost, Inequality Of Bargaining Power
Document Summary
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. Breach does not happen automatically; even when a breach is sufficient to discharge, the non-breaching party must communicate that they are treating the contract as discharged to the breaching party. Effect of breach: may discharge the contract but not always. Warranty non-essential term in the contract. Condition an essential term of the contract. Express repudiation one of the contracting parties advises the other that it does not intend to perform as promised. Options to non-breaching party: terminate k but reserve the right to sue for damages. Anticipatory breach an express repudiation that occurs before the time agreed for performance. Importance of timing: k formation k is binding from that point. One party renders performance impossible: self-induced frustration, contracts of personal performance (double-booking, can be before or at time performance is due.
