Non-acceptance by D of cargo of maize. Contract entered into on May 23. May 29 D repudiates. July 24 P sues. Sept 5 P sells cargo (date when delivery was to be made – performance date). P sells at a loss
How are damages assessed when a contract is repudiated by one party and treated as a breach by the other party?
The repudiation of one party has no significance unless other party acts on it or accepts it. Once that party accepts the repudiation the duty to mitigate arises (the duty to mitigate arises when a breach arises, the repudiation is treated as a breach when accepted).
**In regular contracts the duty to mitigate arises when the contract is breached. In anticipatory contracts the duty to mitigate arises when the contract is treated as breached
When there is a repudiation, which the other party chooses to treat as a breach, the primary rule is that the damages are the difference between the contract price and the market price of the goods at the date of the breach.
Recover loss as if maize had been sold on July 24 (when sues)