Chapter 26 Self-test questions

. When can one party choose to terminate an ongoing contract through a repudiatory breach?

All cases.

Where the other party accepts the repudiation.

Where the other party does not actively oppose this.

Never.

. Which justification for the doctrine of anticipatory breach is favoured by current orthodoxy?

Anticipatory breach involves a breach of an implied promise to maintain the contractual obligation intact from the making of the contract until it is performed.

Anticipatory breach is a breach of the contractual obligations yet to fall due; it is established by an objectively reasonable inference that the contractual obligation will not be properly performed when due.

Both of the options given are correct.

None of the options given is correct.

. What is meant by 'mistaken repudiation'?

A mistakenly believes they have a right to repudiate, when they have no such right.

A mistakenly believes that they do not have a right to repudiate, when they do have such a right.

A mistakenly believes that B has breached the contract, and that they may terminate accordingly.

None of the options given is correct.

. In which of the cases given was it held that a mistaken repudiation constitutes an anticipatory breach by A which entitles B to treat the contract as repudiated and claim damages?

Federal Commerce Navigation Co Ltd v Molena Alpha Inc

Woodar Investment Development Ltd v Wimpey Construction UK Ltd

Both of the options given are correct.

None of the options given is correct.

. Why might the approach in Federal Commerce Navigation Co Ltd v Molena Alpha Inc be preferred to Woodar Investment Development Ltd v Wimpey Construction UK Ltd?

In Woodar, it did reasonably appear to Woodar that Wimpey was repudiating the contract.

Woodar is unduly favourable towards the breaching party.

Both options given are correct.

Neither option is correct.

. In general, must B 'communicate acceptance' of the breach in order to terminate a contract?

Yes.

No.

. When may B 'accept the breach' of A simply by not performing their obligations?

Always.

Where B's non-performance would make it clear to the other party that B accepted that the contract was at an end.

Where B's non-performance would make it clear to a reasonable person that B accepted that the contract was at an end.

Never.

. How may an innocent party respond to an anticipatory breach of contract?

They may 'accept' the breach and sue for damages.

They may wait and see whether the defendant performs on the due date.

They may perform the contract on their own, if there is no need for cooperation of the other party.

All of the options given are correct.

. According to the majority of the House of Lords in White & Carter (Councils) Ltd v McGregor, was the innocent party required to take reasonable steps of mitigation following the other party's anticipatory breach of contract?

Yes, but they had the right to perform the contract.

Yes, nor did they have the right to perform the contract.

No, and they had a right to perform the contract.

No, nor did they have the right to perform the contract.

. For what reasons has the decision in White and Carter been criticised?

The pursuers' claim should have been in damages, and they had a duty to mitigate.

The contract was not in its nature specifically enforceable.

The 'legitimate interest' element is confusing.

All of the options given are correct.

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