Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Breach of the Contract
- This topic has 7 replies, 2 voices, and was last updated 9 years ago by MikeLittle.
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- March 5, 2015 at 4:26 pm #231391
Dear Sir,
Question
Jean, a manufacturer from Rodland, has entered into a contract with Paul, a wholesaler from Cualnd, to supply him with three machines. Several weeks after Jean began constructing the machines, Paul changed his mind about the design specification and has notified Jean of his intention not to pay for the machines.You should assume that the UN Convention on Contracts for the International Sale of Goods applies.
a) State the type of breach of contract that Paul Committed.
Book answer:
Paul’s notification that he does not intend to pay for the machines is an anticipatory breach.My answer: I thought this would have been “breach during performance” as Jean began constructing the machine. “Anticipatory breach is a breach in advance of the due date for commencement of perform”
I am a bit confused of the difference between:
Anticipatory breach and
Breach during PerformanceThank you very much for your help
Gabbi
March 5, 2015 at 6:19 pm #231399I have every sympathy for your “breach during performance” – more so than the suggested solution.
Possibly (and I’m not sure) it could be that “anticipatory breach” is where the party that has not yet started (in this case it’s Paul) gives the notice before HE is required to start HIS part of the contract.
But I’m not happy about that explanation and, therefore, I’m not happy with the suggested solution
March 9, 2015 at 10:18 pm #231854Hi sir,
Thank you very much
Gabbi
March 9, 2015 at 10:39 pm #231856You’re welcome – is there no explanation in the text from which you have extracted the question?
March 13, 2015 at 6:54 pm #232303Dear Sir,
Sorry for late reply. The only explanation given in the book is:
Paul’s notification that he does not intend to pay for the machines is an anticipatory breach.
Thanks
Gabbi
March 13, 2015 at 11:18 pm #232316But where the other party has already commenced performance, the breacher is liable (Errington v Errington) and cannot back out of the contract
Maybe the expression “anticipatory breach” ca n be loosely applied as in “Paul, in anticipation of having to pay and not wanting to, gave notice that it was his intention to breach the contract”
Having used in that sentence the two key words – anticipation and breach – can we now call that “anticipatory breach”
My understanding is that one party gives notice to the other that it is their intention not to go ahead with their part of the contract BEFORE the due date for the contract to start – that would be anticipatory breach.
I can’t help more than that and yet I feel full of trepidation whenever I’m faced with the prospect of disagreeing with a text book!
March 14, 2015 at 8:59 am #232341Dear Mike
Thanks a lot, your explanations help a lot
Best Regards
Gabbi
March 14, 2015 at 8:27 pm #232415You’re welcome
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