Contract Breach Declaration: Immediate Termination or Continued Obligation?
The chapter discusses anticipatory breach of contract, where one party declares they won't fulfill their contract obligations before the due date. The innocent party can choose to accept or reject the breach. If accepted, the contract ends, and damages can be claimed. If rejected, the contract continues, and the innocent party can perform their part and sue for the contract price. However, suing for the agreed sum may not succeed if there was no legitimate interest in doing so.