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Discharge by Breach

A contract may, in some circumstances, be discharged by a breach of contract. Where there exists a breach of condition (as oppose to breach of warranty) this will enable the innocent party the right to repudiate the contract (bring the contract to an end) in addition to claiming damages. A contract cannot be discharged by a breach of warranty.
Anticipatory breach
Where a party indicates their intention not to perform their contractual obligations, the innocent party is not obliged to wait for the breach to actually occur before they bring their action for breach:

Hochster v De la Tour (1853) 2 E & B 678      (case summary)

This gives the innocent party the option to either sue immediately or continue with the contract themselves and wait for the breach to occur before bringing their action. This can be beneficial or risky:

Avery v Bowden (1855) 5 E&B 714          (Case summary)

Discharge by breach of contract