Chapter 26 Self-test questions

1. Why is anticipatory breach considered to be pragmatically very useful?

It stops the repudiating party from having to perform an obligation he does not want to perform.

It provides the non-repudiating party with a right to terminate the contract and sue for damages.

It prevents the repudiating party from having to negotiate a termination of the agreement.

None of the given options is correct.

2. How is an anticipatory breach committed?

When the time comes for one party to perform his part of the contract, he declares that he is not going to do so or puts himself in a position where it will be impossible for him to do so.

Before the time comes for one party to perform his part of the contract, he declares that he is not going to do or puts himself in a position where it will be impossible for him to do so.

Both options given are correct.

Neither option given is correct.

3. How does anticipatory breach differ from an ordinary breach of condition or fundamental breach of an innominate term?

The contract cannot be kept alive when damages are claimed for anticipatory breach.

The anticipatory breach cannot be ignored.

Both options given are correct.

Neither option given is correct.

4. What is the major benefit of anticipatory breach to the contract breaker?

The contract breaker can breach the contract at a time of his choosing.

The counterparty cannot sue for damages and keep the contract alive.

If the counterparty accepts the breach, he is then under a duty to mitigate.

None of the options given is correct.

5. In January, A contracts with B for the supply of lighting for his university ball in July. In March, B tells A that he no longer wishes to supply the lighting as a more lucrative contract has come up. A decides not to accept the breach and keeps the contract alive. A month later, A fails to provide B with an update on the planning of the ball, in breach of a term of the contract. Can B sue A for breach of contract?

Yes

No

6. Why is an action for the agreed sum usually only available where the non-repudiating party's (claimant's) performance is independent rather than contingent on the performance by the repudiating party (defendant)?

The claimant must have fulfilled his or her side of the bargain.

The defendant does not have to accept the performance otherwise.

The defendant must have a legitimate interest in preventing performance.

None of the given options is correct.

7. What are some of the advantages of a debt rather than a breach?

There is no duty to mitigate.

It is procedurally simpler.

A breach does not need to be relied upon.

All the above options are correct.

8. In what circumstances has it been said that a claimant might not have a legitimate interest in bringing an action for the agreed sum?

Where the claimant has acted perversely.

Where the claimant has acted unreasonably.

Where the claimant has acted wholly unreasonably.

All the above options are correct.

Chapter 26 Self-test questions

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