- Damages—causation of loss where specific discrete breaches of contract proved (YJB Port v M&A Pharmachem)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Dispute Resolution analysis: In a case in which there are distinct discrete actual breaches of contract together with anticipatory repudiatory breaches of contract giving rise to the renunciation and termination of the contract, the innocent party potentially has separate but interlinked claims for damages for the actual breaches of contract and for loss of bargain consequent on the early termination of the contract. No separate and distinct claim for damages lies for the anticipatory breaches of contract—their only relevance is that they are the basis of the renunciation and hence the early termination of the contract and it is the early termination consequent on that renunciation that founds a claim for damages for loss of bargain. If an anticipatory breach does not lead to termination (ie, the repudiation is not accepted by the innocent party, and the anticipatory breach never becomes an actual breach) then there is no cause of action for damages. Written by David Fisher, barrister, and associate member, at New Square Chambers.
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