CIMA BA4 · Chapter 11 · Question 4 of 10
A contract states that the seller will deliver goods by 1 June. On 1 May, the seller tells the buyer it will not deliver at all. Under English law, what is the buyer's position?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) This is anticipatory breach; the buyer may sue immediately or wait until the performance date
Explanation
When one party indicates before performance is due that it will not perform, this is anticipatory breach. The innocent party may treat the contract as ended and sue immediately (Hochster v De la Tour), or affirm it and wait for the performance date, accepting the risk of later events. Refusal to perform is not frustration.
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