1. Issue
Does the builder's advance refusal to perform constitute an anticipatory repudiatory breach of contract, and is the developer entitled to expectation damages and replacement costs under Common Law?
2. Rule
- Anticipatory Breach: When one party unequivocally indicates through words or conduct that they will not perform their contractual obligations prior to the due date (Hochster v De La Tour (1853)).
- Remedies & Measure of Damages: The injured party is entitled to be placed in the position they would have occupied had the contract been performed (Robinson v Harman (1848)).
- Duty to Mitigate: The claimant must take reasonable steps to minimize their loss (British Westinghouse v Underground Electric Rlys (1912)).
3. Analysis & Application
Here, the builder's declaration on August 15th represents an unequivocal repudiation before the due date. The developer is entitled to treat the contract as immediately terminated. The £80,000 difference represents legitimate expectation damages required to achieve the contractual objective.
4. Conclusion
The builder is liable for anticipatory repudiatory breach. The developer will successfully recover the £80,000 differential damages subject to proving the substitute builder was procured at competitive market rates.