Ch 5- Breach Of Contract And Remedies

Question 1

What is meant by a straightforward breach?

Answer 1

Straightforward breach is when a party actually fails to comply with a contractural term.

Question 2

What is meant by an anticipatory breach?

Answer 2

When one party gives notice of their intention to not comply with a contractual term.

Question 3

What action can be taken with respect to an anticipatory breach?

Answer 3

1. Sue immediately on the notice of breach.
2. Perform contractual obligations and sue for full amount.

Question 4

What is the nature of damages according to the doctrine of restitution?

Answer 4

According to the doctrine of restitution, awarding of damages is said to be compensatory in nature.

Question 5

What is reliance interest?

Answer 5

Reliance interest is a term that specifies circumstances where the innocent party may wish to sue for the lost profits incurred due to breach of contract.