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CMA Foundation · Fundamentals of Business Laws and Business Communication · Breach of Contract and Remedies for Breach of Contract

Meera Textiles agrees on 1 March to deliver 500 bales of cloth to Rohan Traders on 30 June. On 10 April Meera Textiles writes that it has sold the entire stock elsewhere and will not deliver. What type of breach has occurred?

This is an anticipatory breach by express repudiation. Meera Textiles told Rohan Traders in April, well before the 30 June delivery date, that it would not deliver. Because the refusal came before performance was due, it is anticipatory rather than an actual breach.

  1. AActual breach, because the contract was already in force
  2. BAnticipatory breach by express repudiationCorrect
  3. CNo breach, because the delivery date has not arrived
  4. DBreach by part performance

Explanation

Meera Textiles announced before the due date of 30 June that it would not perform, which is an express repudiation, hence anticipatory breach. Actual breach would arise only on or after the due date. The delivery date not having arrived does not prevent breach where the promisor has renounced the contract.

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