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CHAPTER 10

DEFAULT BY
DEBTOR

PREVENTION OF DEFAULT BY
PERFORMANCE CREDITOR
5 FORMS
OF BREACH
OF
CONTRACT

POSITIVE
REPUDIATION
MALPERFORMANCE
USED IN RELATION
TO SPECIFIC
OBLIGATION - NOT
CONTRACT AS
WHOLE

WHERE
OBLIGATIONS
DEBTOR
DEBTOR HAS TO
FROM BOTH
PARTIES - WILL IN
TURN BE DEBTOR &
& PERFORM
OBLIGATION
CREDITOR
CREDITOR

CREDITOR =
ENTITLED TO
PERFORMANCE
DEBTOR COMMITS
BREACH OF
CONTRACT

(2) DELAY DUE TO


MORA DEBITORIS
DEBTORS FAULT

DEFUALT
BY
DEBTOR
(1) PERFORMANCE IN DEFAULT = IN
= DELAYED MORA

2 x REQUIREMENTS
MORA
DEBITORIS -
POSSIBLE TO
PERFORM @
DEMAND
LATER STAGE IF TIME = LINKED
NECESSARY IF
TO PERFORMANCE
PERFORMANCE
- NOT IN MORA -
SPECIFIED FOR
PREVENTION OF
CERTAIN DAY,
PERFORMANCE -
BUT UNCERTAIN
NO LONGER
WHEN DAY WILL
POSSIBLE
ARRIVE

(1) SPECIFIC DATE /


DEBTOR IN
TIME FOR
MORA WHEN
PERFORMANCE
FAILS TO DELAYED STIPULATED -
PERFORM BY
PERFORMANCE DEBTOR FAILS TO
CERTAIN DATE
PERFORM ON TIME
(MORA EX
= IN MORA (MORA
PERSONA)
EX RE)

CREDITOR MUST
ALLOW DEBTOR
DATE MUST BE
REASONABLE
CERTAIN
TIME IN WHICH
TO PERFORM
(2) NO EXACT
DATE - CREDITOR
DEMAND
PERFORMANCE
BEFORE / ON
CERTAIN DATE
BREACH OF
CONTRACT ONLY
WHEN PARTY TO
CONTRACT
CULPABLY,
INTENTIONALLY /
NEGLIGENTLY NOT
HONOUR
OBLIGATION

DELAY
DUE TO
DEBTOR'S
IF DEBTOR
FAULT
WARRANTED
PERFORMANCE -
NO BREACH -
WILL BE BREACH OF
CIRCUMSTANCES
CONTRACT - BY
BEYOND CONTROL
GIVING GUARANTEE
- DEBTOR ASSUMES
RICK OF DELAY
ENTITLES CREDITOR
TO REMEDIES FOR
BREACH OF
CONTRACT

IN MORA DEBTOR EFFECT ON LIABILITY,


MAY NOT CLAIM TO SHOULD
BE RELIEVED OF PERFORMANCE
OBLIGATION WHERE BECOME IMPOSSIBLE
PERFORMANCE WHILE DEBTOR IS IN
BECAME IMPOSSIBLE MORA
CONSEQUENCES
OF DEBTOR'S
FAULT

IF IMPOSSIBLE AFTER SUPERVENING


IN MORA IMPOSSIBILTY OF
SUPERVENING PERFORMANCE
POSSIBILITY OF EXTINGUISHES
PERFORMANCE - NOT OBLIGATION -
HAVE EFFECT OF RELEASING DEBTOR
EXTINGUISING FORM DUTY TO
OBLIGATION PERFROR
MORA CREDITORIS

DEFAULT
BY
CREDITOR
CREDITOR'S CO-
OPERATION = CREDITOR CAUSES
REQUIRED FOR DEBTOR'S
DEBTOR TO BE ABLE PERFORMANCE TO
TO RENDER BE DELAYED
PERFORMANCE
(A)
PERFORMAN
CE MUST BE PERFORMANCE
DISCHARGEA NOT
BLE DISCHARGEABLE
DEFAULT
UNTIL ANY RELATED
MUST BE DUE
SUSPENSIVE
TO FAULT OF
CONDITION =
CREDITOR
FULFILLED / UNTIL
TIME FOR
PERFORMANCE

NO EXACT DATE -
(B) DEBTOR
DEBTOR DEMAND
MUST
& SET DATE - IF
TENDER
NOT PERFORMED
PERFORMANC
- MORA EX ELEMENTS E
PERSONA
OF MORA
CREDITORIS

EXACT DATE DEBTOR OFFER


FOR CREDITOR PROPER
PERFORMANCE PERFORMANCE
NOT & REQUEST
PERFORMED - CREDITOR'S CO-
MORA EX RE OPERATION
IF
(C) CREDITOR PERFORMANCE
MUST FAIL TO = DEFECTIVE &
GIVE CO- CREDITOR
OPERATION & REFUSE TO
THEREBY DELAY ACCEPT - NOT
PERFORMANCE BREACH OF
CONTRACT
(A) DEBTOR'S
DUTY OF CAR
=
DIMINISHED DEBTOR
IF CREDITOR RESPONSIBLE
IF EARLIER MORA IN MORA ONLY FOR
= EXTINGUISED,
INTENTIONAL
LIABILITY FOR IT =
LOSS & LOSS
NOT
OCCASIONED BY
EXTINGUISHED
GROSS
NEGLIGENCE

(B) RECIPROCAL
(D) DEBTOR IN
AGREEMENTS -
MORA -
DEBTOR
REMOVED BY
REMAINS
SUBSEQUENT
ENTITLED TO
DEFAULT OF CONSEQUENCES PERFORMANCE
CREDITOR
OF CREDITOR'S DUE TO HIM
DEFAULT

DEBTOR ALSO
CREDITOR
REMAINS
REMAINS
LIABLE FOR
LIABLE FOR
PERFORMANC
COUNTER-
E - PERFORM
PERFORMANCE
LATER
(C) SHOULD
PERFORMANCE
BECOME IMPOSSIBLE - OBLIGATIONS
OTHER THAN OF PARTIES
THROUGH INTENTION NOT
/ GROSS NEGLIGENCE TERMINATED
WHILE IN MORA BY MORA
DEBTOR RELEASED CREDITORIS
FROM OBLIGATION TO
PERFORM
DEBTOR COMMITS
ACT WHICH =
CONTRARY TO
TERMS OF
CONTRACT

PERFORMANCE =
(2) DEBTOR DOES
PERSON DO
SOMETHING MAY
SOMETHING /
NOT DO ITO
REFRAIN FROM
AGREEMENT
DOING SOMETHING

POSITIVE
MALPERFORMANCE

(1) DEBTOR TENDERS


DEFECTIVE /
2 SITUTATIONS:
IMPROPER
PERFORMANCE
ANY BEHAVIOUR BY
PARTY INDICATING
THAT MAY NOT
HONOUR
OBLIGATIONS
UNDER CONTRACT

EXISTENCE OF
CONTRACT =
DENIED; TRIES TO
ENTITLES INNOCENT
WITHDRAW FROM
PARTY TO USUAL
CONTRACT
REMEDIES FOR
WITHOUT
BREACH OF
JUSTIFICATION;
CONTRACT
GIVES NOTICE THAT
CANNOT / WILL NOT
PERFORM
REPUDIATION

INNOCENT PARTY
NOT EXPECTED TO POSSIBLE TO
WAIT & BEAR RISK REPUDIATE ONLY
THAT OTHER PARTY PART OF
MIGHT NOT HONOUR OBLIGATION
OBLIGATIONS
WHERE DEBTOR
CULPABLY RENDERS
OWN
PERFORMANCE
IMPOSSIBLE

PREVENTION
OF
PERFORMANCE
BY DEBTOR

PAY DAMAGES DEBTOR NOT


INSTEAD OF RELEASED FROM
PERFORMING OBLIGATION
CREDITOR
CULPABLY RENDERS
PERFORMANCE BY
DEBTOR IMPOSSIBLE
- BREACH OF
CONTRACT

DEBTOR MUST BRING


DEBTOR'S
INTO ACCOUNT
PERFORMANCE CAN
EXPENSES WHICH
NEVER BE RENDERED
HAVE BEEN SAVED
PREVENTION
OF
PERFORMANCE
BY CREDITOR

DEBTOR STILL
DEBTOR DEEMED TO
ENTITLED TO
HAVE DISCHARDED
CREDITOR'S
OBLIGATION
PERFORMANCE

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