Breach of Contract - Paper 3

Question 1

What are the two types of breach?

Answer 1

Actual and Anticipatory

Question 2

What is an actual breach of contract?

Answer 2

Where a party has failed to perform their obligations under the contract

Question 3

What is an anticipatory breach of contract?

Answer 3

When a party gives notice in advance to the other party that he or she will not be performing or completing the contract

Question 4

What happens if there is an actual breach of a condition or warranty?

Answer 4

Condition: Contract is repudiated and/or C can sue for damages

Warranty: The contract must carry on but damages can be claimed

Question 5

What happens if there is an anticipatory breach of a condition or warranty?

Answer 5

C chooses whether to sue immediately or wait for the consequences of the breach to happen, then sue

Question 6

What is the aim of compensatory damages in contract law?

Answer 6

Place C in the same position as if the contract had been performed

Question 7

What are the three categories of recoverable loss?

Answer 7

1) Loss of a bargain
2) Reliance loss
3) Restitution

Question 8

What does duty to mitigate your loss mean?

Answer 8

Injured party must take reasonable steps to minimise the effects of the breach

Question 9

What are the equitable remedies available under contract law?

Answer 9

1) Injunction
2) Specific Performance
3) Recission