When Does a Cause of Action in Contract Accrue if There Are Multiple Breaches?
In contract law, a cause of action accrues when a party experiences a breach of contract. However, what happens if there are multiple breaches of the same contract? When does the cause of action accrue in such a situation?
When multiple breaches occur, it can be challenging to determine when the cause of action accrues. The accrual date is critical because it determines the deadline for filing a lawsuit and pursuing legal remedies. If a party waits too long to file a lawsuit, they risk losing the opportunity to seek compensation.
The general rule is that a cause of action accrues when the breach occurs. This means that each breach can trigger a separate cause of action. For example, if a party breaches a contract by failing to pay on the due date, that breach will trigger one cause of action. If the party continues to fail to make payments, each additional breach will trigger a separate cause of action.
However, there are exceptions to the general rule. The accrual date may be delayed if the breaches are ongoing or if there is a continuing duty to perform. In such cases, the cause of action may accrue only when the breaches stop or when the continuing duty ends.
Moreover, some courts follow the “last straw” doctrine. This doctrine states that a cause of action accrues only when the last breach occurs, regardless of the number of previous breaches. The last straw doctrine is often applied in cases where there is a series of minor breaches, and it is not practical to pursue a legal remedy for each breach.
Another exception is the doctrine of anticipatory repudiation. This doctrine applies when one party informs the other party that they will not perform their contractual obligations. In such cases, the cause of action accrues immediately, even though the breach has not yet occurred.
In conclusion, determining when a cause of action in contract accrues when there are multiple breaches can be complicated. The general rule is that each breach can trigger a separate cause of action, but there are exceptions. The accrual date may be delayed if the breaches are ongoing or if there is a continuing duty to perform. The “last straw” doctrine and the doctrine of anticipatory repudiation are also exceptions to the general rule. It is essential to understand these rules to ensure that you do not miss the deadline for filing a lawsuit and seeking legal remedies.