P was a courier who entered into an agreement with D to work for him in Europe. He was to begin on June 1.
On May 11, D changed his mind and told P that he wouldn't require P's services. D refused to make any compensation.
P filed suit against D on May 22.
Procedural History:
Lower court found for P.
Appellate court reversed, suit filed before performance was to be done, damages cannot be awarded.
Queens Bench reversed, found for P, damages can be awarded.
Issues:
Can an action for breach of contract be brought before the time the performance in question was supposed to occur?
Holding/Rule:
An action for breach of contract can be brought at any time after the breach, including before the time the performance in question was supposed to occur.
Reasoning:
Where there is an agreement to do an act on a future day, there is a relation constituted between the parties, and they impliedly promise that in the meantime neither will do anything to the prejudice of the other inconsistent with that relation.
If the P has no remedy for breach until the date in question, it follows that he cannot enter into other employment before then since that would cause him to breach as well.
After the renunciation of the agreement by the D, the P should be a liberty to consider himself absolved from any future performance of it, retaining his right to sue.
It seems reasonable to allow an option to the injured party, either to sue immediately or to wait till the time when the act was to be done.
Dissent:
None.
Notes:
Helps to answer the question of what exactly constitutes a breach of contract.
