Prevention of Performance by Promisee

Abstract

When the promisee ceases to be interested in performance of the contract by the promisor—and the case is not caught by the rules relating to frustration of purpose—he will prefer the promisor not to perform it. If breach by the promisor occurs, the promisee will be entitled to damages and where an abstract valuation applies (the difference between the consideration for the property or service under the contract and its value at the date of rescission: sec. 11 of the Contracts (Remedies for Breach of Contract) Law, 1971) that will be very convenient for the promisee. In every case, he will be spared performance on his part. Less convenient, but still sufficiently convenient, is the assumption that it is impossible for the promisor to perform: that the same event which caused the promisee's benefit in performance by the promisor to cease—or some other event—precludes performance by the promisor or renders it too onerous. Here as well the promisee will be spared his own performance and in addition may possibly receive indemnity, under sec. 18 of the Law, “for expenses reasonably incurred and liabilities reasonably contracted by him for the performance of the contract.”