contract-law united-kingdom business hong-kong
Wrongful termination of contract as anticipatory breach?
<p>A is a book publisher and would like to take part in a Book Fair. A contracted B to do all the arrangements, for example, erecting displays and stands in the venue of the Fair. A agreed to pay B by two instalments.</p>

<p>The payment of the second instalment is late for 4 days. B attempted to terminate the contract, claiming that A has committed a 'repudiatory breach ' of the contract by late payment and that time is the essence of the contract.</p>

<p>Assuming that time is actually NOT a condition (or essence) of the contract, and thus B in fact has NO right to terminate, would B's attempt to terminate amount to an anticipatory breach? Because B has clearly evinced an intention to refuse all performance by 'terminating' the contract?</p>

<p>There are 2 easy ways to terminate a contract: by performance or by agreement. All the other ways are difficult, painful and expensive.</p>

<p>The only way to <strong>know</strong> if you have a right to terminate is do it, get sued and have a judge tell you you did have that right ... or not.</p>

<p>A and B should talk to each other and work out a way to either complete the contract (i.e. renegotiate) or work out how to end it in the least painful way possible.</p>
