Thursday 28 March 2013

3 Minute Cases: White & Carter Ltd v McGregor 1962


Facts
  • Thus case concerns an advertising contract between the plaintiffs who sold advertising space on litterbins and the defendant, a party looking to advertise. 
  • The day the contract was drawn up, the defendant cancelled the contract. 
  • The plaintiff’s chose to affirm the contract and went a head with the advertising for the three years and then looked to sue the defendant for the contractual price. 
  • It made sense for them to pick this option that should they have accepted the breach there would be no losses at the time so would only be able to claim nominal damages

Judgement 

  • They were allowed to claim the contractual price as the anticipatory breach was of a condition so it was a major breach even though contract was waste of time and money. 
  • Further it should be noted, that it was highlighted that there was no obligation to mitigate losses when it comes to anticipatory breach and you can’t force the innocent party to accept the repudiation. 

Points
  • Does this make commercial sense 

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