This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
The recognition of the fact of a breach by the adversary party, followed by conduct consistent with the fact of such breach, which looks to the mitigation of damages arising therefrom, does not amount to an abrogation of the contract.1 An employe's conduct in accepting other employment from one member of a partnership on breach of a contract of employment between such employe and such partnership, does not abrogate such contract.2 If a buyer does not perform the contract of sale. the fact that the vendor resells on the vendee's account,3 and that he acts under the vendee's instructions in making such resale,4 does not abrogate the contract of sale. If A breaks a contract into which he has entered with B, B's unaccepted offer to release A from liability on certain terms does not operate as a discharge of such contract.5
Receiving notice of intended breach by the adversary party,6 even if without protest,7 does not amount to a new contract discharging such prior contract. If the receiver of an insolvent corporation disavows a lease made to it, the act of the lessor in receiving the keys and leasing the premises to another tenant, does not amount to a discharge of the original contract of lease,8 especially under a clause giving to the lessor a right to re-enter for breach of condition in case of non-payment of rent.9