#contract #discharge #law
In White and Carter (Councils) Ltd v McGregor Lord Reid qualified his decision by stating that a claimant would not be entitled to affirm and would be confined to a claim in damages for the anticipatory breach if he had no 'legitimate interest, financial or otherwise', in affirming the contract and continuing with performance. Although Lord Reid's qualification was not accepted by the other members of the House of Lords, it was applied in the case of Clea Shipping Corporation v Bulk Oil International Ltd, The Alaskan Trader [1984] 1 All ER 129, where the charterers of a ship informed the owners that they had no further use for it but the owners kept the ship at readiness and fully crewed. The court held that the owners were not entitled to the hire money under the contract but only to damages for the charterer's breach as they had no legitimate interest in affirming the contract.
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