Q&As

Where a party is seeking damages for a repudiatory breach of contract, is the claimant able to claim damages for loss of the chance of the contract continuing to its full period, or are they only able to recover damages for the period of the notice period for mutual termination within the contract?

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Published on LexisPSL on 14/09/2016

The following Dispute Resolution Q&A provides comprehensive and up to date legal information covering:

  • Where a party is seeking damages for a repudiatory breach of contract, is the claimant able to claim damages for loss of the chance of the contract continuing to its full period, or are they only able to recover damages for the period of the notice period for mutual termination within the contract?
  • Case study
  • Standard position
  • Termination notice period

Where a party is seeking damages for a repudiatory breach of contract, is the claimant able to claim damages for loss of the chance of the contract continuing to its full period, or are they only able to recover damages for the period of the notice period for mutual termination within the contract?

This Q&A covers the approach to damages in cases of acceptance of repudiatory breach where the contract contains mutual termination on notice provisions. It focuses on damages which may be recovered for breach of contract.

Case study

Party A and Party B entered into a contract which contained a clause allowing for mutual termination of the contract after a specified period by the service of a notice by one party (such termination being exercisable at will). However, Party A has committed a repudiatory breach of contract. Party B accepts the breach, thus having the effect of terminating the contract with immediate effect. Party B now wishes to claim damages for the breach of contract. Is Party B entitled to claim damages for loss of the chance of the contract continuing to its full period, or are they limited the period of a termination notice which Party A could have served on Party B?

Standard position

A repudiatory breach is a breach

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