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A is a book publisher and would like to take part in a Book Fair. A contracted B to do all the arrangements, for example, erecting displays and stands in the venue of the Fair. A agreed to pay B by two instalments.

The payment of the second instalment is late for 4 days. B attempted to terminate the contract, claiming that A has committed a 'repudiatory breach ' of the contract by late payment and that time is the essence of the contract.

Assuming that time is actually NOT a condition (or essence) of the contract, and thus B in fact has NO right to terminate, would B's attempt to terminate amount to an anticipatory breach? Because B has clearly evinced an intention to refuse all performance by 'terminating' the contract?

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There are 2 easy ways to terminate a contract: by performance or by agreement. All the other ways are difficult, painful and expensive.

The only way to know if you have a right to terminate is do it, get sued and have a judge tell you you did have that right ... or not.

A and B should talk to each other and work out a way to either complete the contract (i.e. renegotiate) or work out how to end it in the least painful way possible.

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