ACCA LW · Chapter 4 · Question 1 of 10
Before the date for performance, one party clearly states that it will not perform its obligations. What is this called and what may the innocent party do, as established in Hochster v De La Tour?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Anticipatory breach; the innocent party may sue immediately without waiting for the performance date
Explanation
An anticipatory breach occurs when a party indicates, before performance is due, that they will not perform. In Hochster v De La Tour the innocent party was allowed to sue for damages at once. Alternatively the innocent party may affirm the contract and wait for the date of performance, but then risks the contract being frustrated in the meantime (Avery v Bowden).
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