ABSTRACT
The innocent party may refuse to accept the repudiation. He may affirm the contract and continue to perform his obligations under the contract. In White and Carter Ltd v McGregor (1962), the defendants cancelled a contract shortly after it had been signed. The plaintiffs refused to accept the cancellation, carried on with the contract, and then sued for the full contract price. Held-the plaintiffs were entitled to succeed; a repudiation does not automatically bring a contract to an end; the innocent party has an option either to affirm the contract or to terminate the contract, unless: • the innocent party needs the co-operation of the other
party. In Hounslow BC v Twickenham Garden Developments Ltd (1971), Hounslow council cancelled a contract to lay out a park. It was held that the defendants could not rely on White and Carter v McGregor because the work was to be performed on council property;
• the innocent party had no legitimate interest, financial or otherwise, in performing the contract rather than in claiming damages. In The Alaskan Trader (1984), a ship chartered to the defendants required extensive repairs at the end of the first year, whereupon the defendants repudiated the contract. The plaintiffs, however, refused to accept the repudiation, repaired the ship, and kept it fully crewed ready for the defendant’s use. Held-the plaintiffs had no special interest in keeping the contract alive. They should have accepted the repudiation and sued for damages.
