3 - termination of contract

Question 1

what is a severable contract

Answer 1

a number of obligations means that the contract can be discharged through performance of only part of the obligations

Question 2

what happens if it is possible to perform a contract when it is made

Answer 2

there is no contract

Question 3

what happens if impossibility arises after the contract has formed

Answer 3

the parties can negotiate escape clauses

Question 4

what happens if neither party can negotiate an escape clause and what is it called

Answer 4

the contract ends and it is discharged by frustration

Question 5

what are the 3 consequences of frustration

Answer 5

• any money paid is to be repaid
• any sums due cease to be payable
• if any party has a valuable benefit other than money, this must be repaid

Question 6

what is an example of a repudiatory breach

Answer 6

very serious breach
where the breach is of a term that is fundamentally important
or the breach has the effect of depriving one party of the whole benefit

Question 7

what is an anticipatory breach

Answer 7

when one party renounces obligations by showing they have no intention of performing them

Question 8

what are the two options with an anticipatory breach

Answer 8

treat the contract as discharged immediately
allow the contract to continue until the actual breach

Question 9

what is a mandatory injuction

Answer 9

directing the defendant to take positive steps to undo something they have done in breach of contractw

Question 10

what is a prohibitory injuction

Answer 10

requries to defendant to observe a negative promise in a contract

Question 11

what is an asset-freezing injunction

Answer 11

prevents the defendant from dealing with assets where they think the defendant might export assets

Question 12

what is UCTA 1977

Answer 12

unfair contract terms act 1977