A complete failure to respond to an order for performance, following an earlier communication of inability to perform, constitutes clear repudiation. A solicitors' demand letter claiming the full balance of a loan may or may not constitute acceptance of repudiation depending on whether it conveys termination of the contract or merely a claim under it — the majority held the commercial reality of the letter was sufficient, while Sackville AJA required clearer language. Where a debtor intimates that compliance with a condition precedent (such as placing orders) would be futile, the creditor is dispensed from performing that condition and the debtor is liable for each month's unpaid repayment. A guarantee of 'due and punctual observance and performance' does not enlarge the guarantor's liability beyond that of the principal debtor.
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