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Breaching a contract by a party does not discharge it at all. It only gives the innocent
party an opportunity either to treat the contract as repudiated or as existing.
If the innocent party treats the contract as existing, it is bound to honour its part of the
contract but has an action in damages.
If the innocent party treats the contract as repudiated the contract is terminated and the party is not bound to perform its part.
A party can only treat a contract as repudiated if the breach is fundamental as was the
case in Poussard V. Spiers and Pond.
Breach of contract may be anticipatory or actual.
Anticipatory breach takes place if a party to a contract expressly or impliedly intimates
to the other in advance its intention not to perform at the due date in which case the
innocent party may, sue in damages for the breach or wait for the date of performance
or sue for the decree of specific performance.
Actual breach takes place if the party fails to perform or tender an unsatisfactory
performance.
maurice.mutuku answered the question on May 1, 2018 at 14:27
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