Tuesday, July 15, 2008

Bar Exam Tip: Anticipatory Breach

Just because you express doubt as to your ability to perform under a contract doesn't amount to anticipatory breach. You much make a clear and definite statement as to this effect and it has to be in writing.

The non breaching party can file a lawsuit immediately, make alternate plans, or both.

Something I see on practice questions a lot:

When a contractor fails to perform under the contract, and the other party has to bring in another contractor to finish the project, the non breaching party can recover the amount over the contract price that it cost to complete the building.

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