Breach of Contract

Question 1

What are the 5 stages of a ‘Breach of Contract’ claim?

Answer 1

(1) EXISTENCE OF CONTRACT
(2) TERMS RELIED ON → (a) Express (e.g. signed written contract) (b) Implied (SGA 1979, SGSA 1982, CRA 2015)
(3) BREACH (of Terms)
(4) CAUSATION → ‘but for’ test
(5) DAMAGES → (a) Causation (b) Remoteness (c) Mitigation

Question 2

What 3 components make up a valid Contract?

Answer 2

(1) Offer
(2) Acceptance
(3) Intention to Create Legal Relations (ICLR)

Question 3

(1) What 2 components make up a valid ‘Offer’ in a contract?
(2) What is the test of whether a valid ‘Offer’ has been made and what type of test is this?

Answer 3

(1)
(a) Clear and certain
(b) Displaying an intention to be legally bound

Question 4

What is the GENERAL RULE of when ACCEPTANCE of a contract takes place when communicated by offeree:
(1) Post
(2) Instant message (e.g. email, text)

Answer 4

(1) POSTED (by offeree)
(2) RECEIVED (by offeror)

Question 5

Re ‘Intention to Create Legal Relations’ (ICLR) to make a valid contract:
(1) What type of test is used?
(2) In what type of contract is it PRESUMED?

Answer 5

(1) OBJECTIVE (look at words, conduct)
(2) Commercial

Question 6

Under the ‘Sale of Goods Act 1979’:
(1) What is the key provision?
(2) What is the statute number?

Answer 6

(1) Goods are of a ‘SATISFACTORY QUALITY’
(2) S14(2) SGA 1979

Question 7

A key provision of the SGA 1979 is that Goods are of a ‘SATISFACTORY QUALITY’:
(1) What test is used to determine this and what type of test is it?
(1) What are 4 factors that influence this?

Answer 7

(1) OBJECTIVE - Reasonable person
(2)
(i) Fitness for GENERAL PURPOSE
(ii) No DEFECTS
(iii) APPEARANCE & FINISH
(iv) SAFETY & DURABILITY

Question 8

Under the SGSA 1982:
(1) What are the 2 key provisions?
(2) What is the statute number for them?

Answer 8

(a) S13 SGSA 1982 - SERVICE carried out with ‘REASONABLE CARE AND SKILL’

(b) S4(2) - GOODS of ‘SATISFACTORY QUALITY’

Question 9

To prove ‘Causation’ in a breach of contract claim, what test is used?

Answer 9

‘But for’ Test - ‘but for’ breach of contract, the losses would not have occurred

Question 10

What is the purpose of ‘Damages’ in a breach of contract claim?

Answer 10

Put C in position if contract has been PERFORMED PROPERLY

Question 11

To claim ‘substantial damages’ for a breach of contract, what 3 areas are considered?

Answer 11

(1) Causation
(2) Remoteness
(3) Mitigation

Question 12

For ‘substantial’ damages to be claimed, the losses CANNOT be ‘Too Remote’. What does this mean?

Answer 12

Losses REASONABLY FORESEEABLE at time CONTRACT FORMED

Question 13

For ‘substantial’ damages to be claimed, what must C have done regarding ‘Mitigation’?

Answer 13

Took REASONABLE steps to MITIGATE LOSS (even if ineffective / worsens loss)