Contracts for Sale of Goods (11:III): Difference between revisions
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Contracts for Sale of Goods (11:III) (view source)
Revision as of 23:42, 5 August 2021
, 5 August 2021→1. Condition
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=== 1. Condition === | === 1. Condition === | ||
A condition is a term that is so essential to the agreement that its breach is considered to be a substantial failure to perform the contract. A breach of a condition is said to go to the root of the contract. In other words, the breach is such that it deprives the innocent party of “substantially the whole benefit” of the contract. | A condition is a term that is so essential to the agreement that its breach is considered to be a substantial failure to perform the contract. A breach of a condition is said to go to the root of the contract. In other words, the breach is such that it deprives the innocent party of “substantially the whole benefit” of the contract. If a manufacturer/supplier/seller breaches a condition, the buyer is entitled to terminate any further obligations under the contract and sue for damages. | ||
Anticipatory breach is where one party (say, the seller) communicates their intention to breach in the future. The aggrieved party (here, the buyer), if aware of the impending breach, could accept the repudiation by the seller and terminate the contract, ending all future obligations except for the seller’s obligation to pay the damages that stem from non-performance. Or, the aggrieved party could '''not''' accept the repudiation and may wait for the future breach to actually occur before pursuing damages (e.g., if they think that there is still a chance that the contract will be performed). | |||
=== 2. Warranty === | === 2. Warranty === | ||