Suppose an owner hires a contractor to install new sanitary facilities and insists that the pipes that will eventually be hidden behind the walls must be red. Instead, the contractor uses blue tubes that work just as well. Although the contractor has breached the terms of the contract, the owner cannot require a court to replace the blue tubes with red tubes. The owner can only recover the amount of his actual damages. In this case, it is the difference in value between the red tube and the blue tube. Because the color of a tube does not affect its function, the difference in value is zero. As a result, no damage was caused and the owner would receive nothing (see Jacob – Youngs v. Kent.) There is also a refusal. When a party expressly makes an unconditional and explicit refusal to execute it, it is characterized as an “explicit refusal.” Express refusal cannot be linked to a future event. She can`t say, “If it doesn`t sell, we can`t pay you.” And it can`t be ambiguous. She cannot say, “We may not be able to make this relationship work.” It is clear that “we will not honour this contract.” Another type of refusal exists when one party prevents the other from providing a service. For example, when a development studio develops a licensed IP and the licensee never provides the assets needed for development. Another refusal would occur if the contracted property was transferred to another person.
For example, one company will buy equipment from another, and the seller will then donate all the equipment to charity. The sales contract is still in effect, but the buyer might assume that it has been rejected. There are three main routes for which a party can be held responsible for the offence. It also involves the moment: analysing past agreements – both those that have been successful and those that have not been provided as intended – can help you identify the conditions and clauses that best reduce vulnerabilities. For example, if you compare similar types of contracts that have all led to violations, you may find commonalities in the formulations you can avoid. (Pro-Tipp: If finding past agreements to perform such an analysis seems cumbersome, try organizing your contracts into an electronic storage system that allows you to mark and categorize documents and find text.) An innocent party therefore has the right to terminate a contract solely for breach of a contractual condition, refusal or right of termination. No less. For example, if a person who sells his home refuses to hand over the keys and the property to the conclusion to the buyer, the buyer can take legal action on a certain service.
This means (provided the right measures have been taken naturally) that the court may compel the seller to cede his property to the buyer. In some situations, there is what we call an effective offence. An effective offence is always a violation of the agreement, with all luggage present.