What is the legal test for terminating a contract where a party elects to treat a breach as discharging him from his obligations?
British Columbia, Canada
The following excerpt is from Hartlaub v. Oliveira, 2010 BCSC 501 (CanLII):
In those circumstances, as the court said, in Saunders v. Multi Builders Ltd.:[5] Where a party elects to treat a breach as discharging him from his obligations, the effect is to terminate the contract from the moment of election and no earlier. Its termination is not retrospective. It still exists so far as the past acts and defaults of the parties are concerned, and it forms the basis upon which the innocent party may recover damages for the breach. ...
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