Study Guides (238,158)
Canada (114,969)
Accounting (35)
ACTG 2P40 (19)
P.Maloney (16)

Chapter 14 Breach of a Contract.docx

3 Pages
Unlock Document

Brock University

Chapter 14 Breach of Contract – Effect of a Breach  All prior topics are basically equity remedies for when a contract is impeached Effect of a Breach  Breach of Representation = Misrepresentation  Breach of Term = Breach of Contract Terms divide into 2 separate categories 1. Degrees of Breach ( 2 different types of terms to breach ) (a) Minor Breach ( Breach of Warranty – less important )  Some terms are less important than other terms in a contract  Non-Essential terms and Essential terms  A minor breach can happen in 2 ways 1) A Breach of a Non-Essential term of a Contract 2) A Breach of an Essential term of a contract in a Minor respect  A minor breach will only allow the aggrieved party to sue for breach of contract to get damages and does not give the aggrieved party the right to terminate the contract ( end the contract )  With a minor breach the aggrieved party must sue at the end of the contract ( what is essential to a term will tell you what is minor or major, like in the Barbie example, the clothing may be a non-essential term if not specified or not important-vice versa – if they wanted 10,000 units and you only send 9,900 this is an essential breach ) (b) Fundamental (Major) Breach ( Breach of a Condition )  if the term that is breached completely changes the benefits of a contract or changes the contract RADICALLY – prolly a Major Breach ( essential term )  in a minor breach the aggrieved party has a choice 1) the aggrieved party can treat the contract to an end and sue for damaged right away 2) the aggrieved party can keep the contract going and sue for damages after the contract is over  it all depends what is FUNDALMENAL to the contract  In most cases the party will take option 2) because the party will not have any other choice or option ( lack of other suppliers )  Once the aggrieved party has made a choice, they may not change their mind 2) How a Breach May Occur (a) Repudiation and Anticipatory Breach Repudiation Breach – this is a breach with out any notice to the party in advance, the party just simply says with no prior warning “I can‟t perform under the contract” Anticipatory Breach – this is a breach when the party that is about to breach warns the other party in advance that they are going to breach the contract  Anticipatory breach allows for the party to see if they
More Less

Related notes for ACTG 2P40

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.