Contract Law Problem Question - Breach of Contract Essay

Contract Law Problem Question - Breach of Contract - Essay ExampleA breach of contract occurs when a party to it acts inconsistently with his obligations either by implications or express actors line without lawful excuse. The onus is on Peter to prove that there was, in fact, a breach commit by David. Generally, the act that is allegedly in breach must have such an effect, that the party in question has put it out of his power to perform his obligations (Alfred C Toepfer International GmbH vs Itex Hagrani Export SA (1993) 1 Lloyds Rep 360, 362). Moreover, Peter is not required to wait for David to perform, and the effect of the breach is warm (Hochester v. De La ecstasy (1853). In order for the breach to be classified as a repudiatory breach, that is one allowing Peter to pose aside the performance of the contract, the breach must be one of condition or a austere innominate term and not warranty. The current scenario entails a breach of time, which is generally of the essence. It is arguable that this breach is one of condition, and the immediate consequence of that for Peter is his right to elect one of two alternatives terminate the performance of or actualise the contract, communication either of them in a reasonable amount of time (Stocznia Gdanska SA v. Latvian Shipping follow (2002)). Since Peter has opted to stay at the house and continue running it as a guest house, he has decided to opt for the assertation of the contract, which will be affected just by merely proceed with his obligations of running the business while maintaining a healthy profit (Davenport v. R (1877)). Thus, Peter is advised to affirm the contract and apply for an order of specific performance by exercising his right of election and wages a claim in damages.