Breach Of Contract

Question 1

What amount to a Breach of Contract

Answer 1

• Refusal to perform the obligations
• Late performance of one of more obligations
• ‘Defective’ performance

Question 2

Arcos Limited v E.A Ronaasen & Son 1933

Answer 2

-Contract to supply timber
- Variation permitted in length and breadth not thickness
- Fit for making cement barrels
The Staves delivered weren’t exactly to contract description thus the buyer rejected a sued for the loss profit.

LORD Atkin: “but I’m a falling market I find that buyers are often eager to insist on their legal rights…..”

“A ton does not mean about a ton or yard about a yard. If the seller wants a margin he must, and in my experience does, stipulate for it”

Question 3

What are the remedies for the innocent party?

Answer 3

Damages - Primary remedy

Termination of the agreement before completion by one of the parties

(Wrongful termination could lead to a claim for damages)

Question 4

Breach of term

Answer 4

Breach of a major term (Condition)

Breach of a minor term (Warranty)

Question 5

Does the contract necessarily one to an end? (If breached)

Answer 5

One gains the right to terminate

Can choose to maintain the contract

Question 6

What happens if the contract is affirmed after breach?

Answer 6

The right to termination is lost if the contract is affirmed.

Question 7

What happens when a Breach is anticipatory? (Events occur prior to contractual time for performance)

Answer 7

Once the breach happens the innocent party wholes the right to terminate or claim damages (depending on the type of breach).

Or to continue the contract