Part 2Remedies for Breach of Contract

Mutuality of contract

17Mutuality of contract

(1)

Subsection (2) applies where any two parties to a contract (those parties being in this section referred to as “PA” and “PB”) are each in breach of the contract.

(2)

PA is entitled to exercise any right, or pursue any remedy, arising out of PB’s breach provided PB’s breach occurs before the contract is lawfully rescinded for PA’s breach.

(3)

But subsection (2) does not entitle PA to require PB to perform the contract in so far as—

(a)

such performance falls due after the contract is so rescinded, or

(b)

PB is (for PA’s breach) lawfully withholding such performance.