Breach of Contract (Lesson 5.5) Flashcards
What duty do parties have when performing contracts under CCQ 1375?
Parties must perform their contractual obligations in good faith.
What happens when this duty is not respected?
The contract is considered breached, and the law provides recourses (CCQ 1590).
What is performance by equivalence?
You hire a third party to fulfill the contract and sue the breaching party for the cost difference.
Example:
Contractor A agrees to paint for $2,000 but refuses. You hire Contractor B for $2,300 and sue Contractor A for the $300 difference.
What is specific performance?
A court order (injunction) requiring a party to perform, stop, or prevent a specific action.
What are the three types of injunctions?
To do something (e.g., transfer property)
To stop doing something (e.g., cease using confidential info)
To prevent something (e.g., prevent misuse of stolen info)
What are the two stages of injunctions?
Temporary (interlocutory): effective immediately to prevent harm during trial
Permanent: granted in the final judgment
What is resolution?(Nullity)
A request to nullify the contract, treating it as though it never existed.
Resiliation (Cancellation) – CCQ 1606
Q: What is resiliation?
A request to cancel the contract moving forward, recognizing it was valid up to a point.
When can you request a reduction of obligations?
In cases of partial performance, allowing you to pay for what was received and cancel the rest.
What other legal tools may be used?
Seizure before judgment to stop a breaching party from hiding or transferring assets.