Action for Debt and Restitution

Question 1

What are the 2 types of remedies?

Answer 1

• Damages (suffered from contract) or Action for Debt (party facing debt claim has to prove DEFENCE against payment)

Question 2

What is an Action for Debt?

Answer 2

• Amount payable under a contract

Question 3

Does mitigation apply in Action for Debt cases?

Answer 3

NO

Question 4

Is the amount payable for Action4Debt contracts fixed?

Answer 4

YES

Question 5

What are the requirements for Action for Debt?

Answer 5

1. Contract MUST contain a certain amount that must be paid or ascertainable amount
2. The right to payment of the sum must have accrued

Question 6

When does the payment accrue?

Answer 6

• Substantial performance
• Divisible performance
• Entire obligations
• Apportionment legislation
• Payments independent of performance

Question 7

What does it mean for a contract to be a ‘substantial performance?’

Answer 7

• Contract worked on as a WHOLE

Question 8

What is Apportionment leggislation?

Answer 8

• Affects when the particular types of payments under contract accrue

Question 9

What is Payments independent of contract?

Answer 9

• Deposits and Instalments are examples

Question 10

When is Restitution available?

Answer 10

• ONLY available where the occuring event is NOT govrned by contract
• Complete withdrawal of consideration

Question 11

What is Restitution?

Answer 11

• Situation where one party benefits from another’s detriment

Question 12

What are the 2 categories of Restitution?

Answer 12

• Return of payments in advance
• Payment for services/benefits provided

Question 13

How may Forfeiture clauses impact Restitution?

Answer 13

• Restitution will NOT be available, despite total failure of consideration, where contract provides for forfeiture of payment

Question 14

When will a Forfeiture clause be invalid?

Answer 14

• goes AGAINST ACL terms
• Unfair contract terms