![if gte IE 9]><![endif]><![if gte IE 9]><![endif]><![if gte IE 9]><![endif]>
Thank You For Submiting Feedback!
It depends in each case on the terms of the contract and the circumstances of the case whether the breach is so material as to affect the contract as a whole.
The parties contracted for the sale of films for moving pictures, with at least one film delivered every month and that each film was to be paid for within 30 days from the date of delivery. The purchaser failed to make payments to the assignor, who received an assignment of the contract. The assignor argued that the default of the purchaser was deliberate, and it caused a breach of the entire contract.
Is the plaintiff’s contention correct that failure to pay for one picture on the due date entitled it to rescind the contract and recover prospective profits?
The court found that the assignor was not at liberty to treat the entire contract as broken and as such, its cause of action was limited to the recovery of payments in default. The court also found that the additional sum of damages awarded by the appeals court was in error as the assignor was entitled to recovery of the payments already due only. Therefore, the judgment to the extent that it modified the judgment entered on the report of the referee was reversed.