Breach of Contract and Remedies

Question 1

1. Can every breach discharge a contract?
2. Can any breach automatically discharge a contract

Answer 1

1. No
2. No

Question 1

Contract breach

Answer 1

when one party fails to live up to provisions of contract

Question 2

Breach - Warranties -
Type of contractual terms
What happens
what to sue for
example

Answer 2

Minor contractual terms
you receive damages,
injured sues for difference in value.
Purchase car with blue body and receive red

Question 3

Breach - Conditions -
Type of contractual terms
What happens 2 things
example

Answer 3

Essential contractual terms
innocent party affirm/sue for damages or discharge contract
Purchase car and get different model

Question 4

Breach - Fundamental Tems
1. Is also called
2. Same option as
3. Allows and what is exception

Answer 4

super charged condition
same options as condition
allows innocent party to negate with exception of liability

Question 5

Breach - Express Repudiation of Liability then what to do

Answer 5

Expressed rejection of one party to another that they will not perform as promised. Treat contract as end and sue

Question 6

Breach - Non performance and example

Answer 6

One party makes promise where they make it impossible to fulfill
Example: Sell good to person but sell it to another before possession date

Question 7

Breach - Failure of performance

Answer 7

Failure to perform at all or you’re tendering the actual performance that is not equivalent to the promise

Question 8

Contract Types of failure (3)

Answer 8

Failure to perform at all
Grossly inadequate performance
Failure in minor particular etc warranty or condition

Question 9

Contract Remedies

Answer 9

plaintiff win then obtain remedy for damages or based on contractual liabilities

Question 10

Common law contract remedies purpose

Answer 10

for damages, place party in condition they would have been in if contract had been fulfilled

Question 11

Expected Damages

Answer 11

in court law, compensation translated into objective or measurement of damages

Question 12

How to measure the position for the party who faced damages (2) and which is more certain

Answer 12

Cost of performance
Economic loss analysis <- more certain

Question 13

basic remedies (3)

Answer 13

rectification (put to right), injunction, damages

Question 14

Restrictions on damages in common law - duty to mitigate………

Answer 14

person who sustained loss as result of breach of contract must do what they can to mitigate the extent of loss

Question 15

Principle of remoteness and example

Answer 15

whether damages were reasonably foreseeable at time of contract.
Ex: using a part for two different cars so must tell supplier

Question 16

Damages/Remedies (3-types)

Answer 16

Special, Punitive and General (same as tort)

Question 17

Cost of performance vs economic loss:
- Case
- Story of case

Answer 17

• PV house against American coal company
• PV house allowed American coal to mine property for oil but added clause for land to be put back in original position and company spends what they can to fix it (Cost of performance)

Question 18

Cost of performance vs economic loss: PV house against American coal company, what happened in the end?

Answer 18

Putting land back to normal (Performance cost) of 30,000 was more than cost of economic value of land itself 5,000. So court wrote cheque for cheaper damages as was more certain in value

Question 19

Head of damages (2)

Answer 19

reliance, mental anguish (pain and suffering)

Question 20

Garvise v Swantours ratio and why this certain damages was moved to be included

Answer 20

in proper case, damages for mental distress can be recovered in contract just as it can for tort. Moved to be included so judges don’t get into vague calculations

Question 21

Liquidated Damages

Answer 21

parties agree in advance of amount to be paid in damages if there is a breach.

Question 22

Nominal Damages

Answer 22

plaintiff is right but not worth any amount of damages

Question 23

Equitable Remedies
- court it stems from
- react to what

Answer 23

court of chancery
shortcomings in common law
money not good enough

Question 24

Basic elements of Equitable Remedies (4)

Answer 24

1. Plaintiff has clean hands
2. Plaintiff cannot have acquiescence
3. No third party for value
4. Substantial consideration

Question 25

Equitable Remedies - Specific Performance

Answer 25

Court orders defendant to do a specified act to complete transaction as damages or money not enough

Question 26

Equitable Remedies - Injunction

Answer 26

Court order restraining party to act in particular manner. Restrain party from committing a breach.

Question 27

Equitable Remedies - Rescission (Federal Jursidiction)

Answer 27

contract set aside, court puts parties back in original position (pre-contract)