Repudiatory Breach, Prospective Inability and The Golden Victory

摘要

Suppose that O enters into a long-term contract to supply goods or services to B, and that B, either before or during the period for performance, wrongfully repudiates the contract. O accepts the repudiation and claims substantial damages according to the usual measure of the difference between the contract price/rate and the market price/rate. However, B denies the claim on the basis that, had the contract remained on foot, O would not have derived all or part of the promised benefits because the evidence establishes that either (1) O would have been unable to supply the goods or services in accordance with the terms of the contract, or that (2) an event had occurred since acceptance of the repudiation that allowed B to cancel the contract pursuant to an express termination clause and that B would have so cancelled. Does B have a valid defence in either of these scenarios?