CONTRACT – Breach of Contract – When a party fails to exercise his right to put an end to a contract by reason of breach – Effect of – Whether at liberty to exercise same in subsequent breach:


It has to be remembered also that if a party is entitled to put an end to a contract by reason of a breach of an essential promise and he does not exercise his right to do so on becoming aware of the breach he loses that right and cannot afterwards exercise the right without giving reasonable notice of his intention to do so.  See Halkett v. Earl of Dudley (1907) 1 Ch. 590 at page 600. But the fact, however, that the company condoned the breach after the first delivery did not prevent them from terminating the agreement when further breaches occurred as it was laid down in Jackson v. Rotax Motors & Cycle Co., (1910) 2 K. B. 937 and Ponoutsos v. Raymond Hardley Corporation of New York (1917) 2 K. B. 473 at pages 478 – 479 that the fact that the innocent party has over-looked one breach of an essential promise does not prevent him from terminating the contract if a second breach of an essential promise is committed. Per SOWEMIMO, J.S.C. in JOHNSON B. BEKEDEREMO V. COLGATE-PALMOLIVE (NIG.) LTD (1976-LCER-1084-SC) at P. 3, Para. A.

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