Hoechster v. De La Tour
Citation: Queen’s Bench, England, 2 El. & Bl. 678, 118 Eng. Rep. 922 (1853)
Facts
In April, De La Tour hired Hoechster as a courier for a European trip beginning June 1. In May — before the contract’s performance date — De La Tour wrote to Hoechster stating that he had changed his plans and would not need his services. Hoechster filed suit immediately in May, before June 1. De La Tour argued that no cause of action could arise until the date performance was due.
Issue
Whether a party may bring an action for breach of contract immediately upon the other party’s pre-performance repudiation, before the date on which performance was due.
Holding
The court held that Hoechster could sue immediately upon De La Tour’s repudiation without waiting for June 1. The repudiation itself constituted a breach giving rise to an immediate cause of action.
Rule
Anticipatory repudiation — a clear, unequivocal statement by one party before performance is due that it will not perform — constitutes a present breach of contract. The non-repudiating party may immediately sue for damages and is not required to wait until the performance date.
Significance
The founding case for the doctrine of anticipatory repudiation (or anticipatory breach), a major doctrine in contract law with no ancient common law precursor. It allows the non-breaching party to treat repudiation as an immediate breach, sue at once, and take steps to mitigate. Codified in UCC § 2-610 and Restatement (Second) § 250.