Breach Flashcards
What are the two types of breach (contract)
Actual - failed to perform obligations
Anticipatory - gives notice of failure, can sue immediately or wait for breach (Hochester v de la Tour)
What are the types of terms that can be breached? (contract)
Condition - main terms, contract ends- rebuttal (Poussard v Spiers)
Warranty - minor terms, contract can continue and damages claimed (Bettini v Gye)
What are the two types of remedies in breach of a contract?
-Compensatory damages
-Equitable remedies
What are the types of compensatory damages under breach of a contract?
Loss of a bargain - profits C expected if contract completed, loss of chance included (Chaplin v Hicks)
Reliance loss - wasted expenditure spent in advance of contract
Restitution - repayment of benefits/money given to D
Liquidated damages - a term that sets the amount of damages that can be claimed, but must be an accurate and proper assessment of loss
What is the side rule of compensatory damages in breach of a contract?
Duty to mitigate loss - reasonable steps must be taken by C to minimise effects
What is an equitable remedy?
An order from the court when damages wouldn’t adequately bring justice
What are the three types of equitable remedies?
-Injunction
-Specific performance
-Rescission
What is specific performance? (contract)
Ordering one party to perform their contractual obligation, cannot be claimed if damages are adequate (Page One Records v Britton) or for personal services. Unfair hardship will also not be allowed (Patel v Ali)
What is rescission? (contract)
Parties are returned to their pre-contract position
What are compensatory damages?
Compensation to return claimant to same position as if the contract had been performed - strict rule indicates that the D doesn’t need to have knowledge, C just needs to prove breach
What are the two types of compensatory damages?
-Loss that is a natural consequence of the breach (objective, apply foreseeability)
-Specific knowledge of any potential losses when contract was made (subjective) (Victoria Laundry Ltd), cannot be claimed if D didnt know of it, only apply if relevant
