Ratio Decidendi
Where one party to a contract announces before the date of performance that they will not perform their obligations, the other party may treat the contract as breached immediately and sue for damages without waiting for the performance date (anticipatory breach).
Facts
De La Tour agreed to employ Hochster as a courier for a European tour commencing on 1 June. On 11 May, De La Tour wrote to say he no longer required Hochster's services. Hochster sued for breach of contract on 22 May, before the contract was due to begin.
Judgment Summary
Lord Campbell CJ held that Hochster was entitled to sue immediately upon the renunciation. It was unnecessary to wait until the date of performance. The party not in default could treat the contract as at an end and seek alternative employment.
Key Quotes
"It seems reasonable to allow an action to be brought before the day of performance, for the party may have already sustained damage."
— Lord Campbell CJ
Subsequent Treatment
The foundation of the doctrine of anticipatory breach, consistently applied and developed in subsequent cases.