Asked by Maggie Desmond on Jun 12, 2024
Verified
In Nicolaou v. Sobhani the parties had a contract for the purchase and sale of a lot. Before the completion date the purchaser alleged misrepresentation on the lot size and instructed their lawyer to ask for the return of the deposit. Was this an anticipatory breach that entitled the seller to keep the deposit? What risk reduction should parties consider in this situation?
Anticipatory Breach
Occurs when one party to a contract indicates, before the performance is due, that they will not fulfill their contractual obligations.
Misrepresentation
An untrue statement of fact; an incorrect or false representation.
Deposit
A sum of money placed in an account or given as security for the fulfillment of a contractual obligation.
- Comprehend the principle of contract frustration and its consequences in law.
- Examine the constraints surrounding specific performance, injunctions, and alternative equitable reliefs in the realm of contract law.
Verified Answer
JQ
Jefrey QuirozJun 17, 2024
Final Answer :
The Court confirmed that anticipatory breach occurs when one party whether by express language or conduct repudiates the contract and shows an intent not to complete. The Court held that the purchasers conduct and in particular the lawyer's letter was an anticipatory breach. Risk reduction: when in a contractual relationship, obligations exist so it is important to consider possible consequences if a disagreement arises later and carefully consider these before stating your position.
Learning Objectives
- Comprehend the principle of contract frustration and its consequences in law.
- Examine the constraints surrounding specific performance, injunctions, and alternative equitable reliefs in the realm of contract law.