Question

Legal principle: A contract may, in some circumstances, be discharged by a breach of contract. Where there exists a breach of condition this will enable the innocent party the right to repudiate the contract (bring the contract to an end) in addition to claiming damages.
Facts: In April, Sagar Tour & Travels agreed to employ Hiten as his courier for three months from 1 June 2020, to go on a trip around the European continent. On 11 May, Sagar Tour & Travels wrote to say that Hiten was no longer needed. On 22 May, Hiten sued Sagar Tour & Travels for breach of contract. Sagar Tour & Travels argued that Hiten was still under an obligation to stay ready and willing to perform till the day when performance was due, and therefore could commence no action before June 1, 2020.

• A. A breach of contract by renouncing the duty to perform the future obligation does not render the party liable immediately to a suit of action for damages by the injured party.
• B. The renunciation of a contract of future conduct by one party immediately dissolves the obligation of the other party to perform the contract.
• C. Hiten has suffered no harm and the offer can be revoked anytime before June 1, 2020 so he cannot claim any damages.
• D. A contract for future conduct do not constitutes an implied promise that, in the meantime, neither party will prejudice the performance of that promise.

Answer 1

Answer: (B)

The renunciation of a contract of future conduct by one party immediately dissolves the obligation of the other party to perform the contract.

Answer 2

The correct option is (B):The renunciation of a contract of future conduct by one party immediately dissolves the obligation of the other party to perform the contract..