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Contract law

 There are two options available to the injured party when an anticipatory breach
takes place:

– The contract may be treated as being discharged immediately and the
injured party may sue for damages.

Illustration 23 – Discharge of the contract

HOCHSTER v DE LA TOUR 1853

Facts:

Hochster was engaged as a courier on a European tour. Before the contracted
period was due to start he was informed that his services were no longer
required.

Held:

Hochster was entitled to claim for payment as soon as he was aware of the
anticipatory breach.

– The injured party may continue with his obligations under the contract until
such time as there is an actual breach of the contractual terms.

Illustration 24 – Discharge of the contract

WHITE & CARTER (COUNCILS) LTD V MCGREGOR 1961

Facts:

M contracted with the claimants to have advertisements put on litter bins. He
then wrote to them asking them to cancel the contract. The claimants refused
and displayed the adverts.

Held:

The claimants were entitled to carry on with the contract and did not have to
accept the defendant’s anticipatory breach. They could then claim the agreed
price under the contract.

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