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In the decision of redrouge nominees pty ltd v canberra institute of technology [2024] actsc 263, the supreme court of the act considered whether a party was entitled to claim damages for ‘loss of bargain’ at common law where it had relied on a contractual right to terminate an agreement. It is important for anyone involved in a contract dispute that they should. In this case, the new south wales court of appeal considered whether the wrongful service of a termination notice by a vendor was a repudiation of the contract for the sale of land.
When do you have a contractual right to terminate a contract Repudiation, often occurs before an actual breach (anticipatory breach), however, is a serious matter in the eyes of the court, requiring undeniable proof of one party's unwillingness or inability to perform the contract Learn to identify when repudiation occurs and how it can affect your contracts.
Goggin v majet concerned a dispute as to whether the disclaimer of a contract by trustees in bankruptcy constituted an anticipatory breach or repudiation allowing the forfeit of the deposit, and ultimately held that was the case.
Repudiation is a drastic conclusion which should only be held to arise in clear cases of a refusal, in a matter going to the root of the contract, to perform contractual obligations. In the recent case of tonner v delaporte [2018] wasca 115 (tonner) the trial judge concluded that the respondent had repudiated the contract However, the court of appeal judges determined there was no repudiation, despite applying the same case law and prinicples of repudiation to the facts. In a significant decision of the supreme court of queensland, storey v britton [2025] qsc 151, freeburn j reaffirmed the importance of clarity, consistency and legal advice when navigating breach, termination and performance of contracts, particularly in residential property transactions.
Repudiation envisages that a party may evince an intention no longer to be bound by the contract either by its actual (past) or anticipated (future) breach. Conduct of an employer which repudiates the contract of employment does not by that act alone bring the contract of employment to an end.
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