Hochster v De La Tour (1853) 2 E&B 678

Facts

• Mr. Hochster and Mr. De La Tour entered into a contract in which Hochster was to serve as De La Tour’s courier for a European tour, with services to commence on 1 June 1852.
• On 11 May 1852, before performance was due, De La Tour informed Hochster that his services were no longer required and he would not uphold the contract.
• Hochster commenced an action for damages on 22 May 1852, prior to the agreed start date.
• De La Tour contended that no breach could have occurred before the performance date and argued the action was premature.

Issues

1. Did De La Tour’s express renunciation prior to the contractual performance date amount to a breach giving rise to liability for damages?
2. Could Hochster bring an action for breach before the date performance was due, or was he required to wait until that date before seeking legal remedy?

Decision

• The court held that express and unequivocal renunciation before the performance date constituted an anticipatory breach of contract.
• It found that a contract contains an implied promise that neither party will hinder the other’s future performance prior to the date set for that performance.
• The court ruled that the innocent party may treat the contract as immediately repudiated and sue for damages without waiting for the performance date.
• The requirement for the innocent party to remain ready to perform after repudiation was deemed unnecessary, since the contract was already discharged by the anticipatory breach.

Legal Principles

• An anticipatory breach occurs where one party, before the time for performance, clearly communicates that they will not perform their contractual obligations.
• A contract contains an implied term that each party will not act to prejudice the other’s ability to perform prior to the due date.
• The innocent party is entitled to seek immediate legal remedy upon unequivocal repudiation and is not required to wait until the time for performance.
• The doctrine provides a mechanism for protecting parties from continued obligations where performance has been refuted before the due date.

Conclusion

Hochster v De La Tour (1853) 2 E&B 678 firmly established that an anticipatory repudiation of contract allows the innocent party to claim damages immediately upon clear renunciation, confirming that parties need not await the performance date to pursue legal remedies for breach.