Beruflich Dokumente
Kultur Dokumente
Issue: has there been a breach of contract and can [defendant] cancel the contract?
If there is grounds for cancellation, did the purchaser elect to affirm or cancel?
Affirmation = party wants to continue with contract despite breach
Must have full knowledge of misrep or breach
Jolly v Palmer (1985)
How to cancel?
The cancellation of a contract shall not take effect:
before cancellation is made known to other party
before the cancelling party overtly makes known the cancellation (if cannot contact other party or it is
not reasonable to do so)
e.g. sending letter to last known address of vendor or agent
Innocent party does not have to give reason for cancellation,
if the innocent party does give reason for cancellation and it turns out this reason is incorrect, but
there are other grounds for cancellation, then cancellation is still valid
Kumar v Station Properties Ltd [2016]
Wrongful cancellation?
A wrongful cancellation usually amounts to a repudiation and will therefore entitle other party to
cancel the contract
Remedies Available