Chapter 3 Flashcards
3 ways to end contract
Performance, Frustration, Breach
Performance must be fully done, exact, precise
What happens if one party prevents others from completing obligations
offering to complete is enough to be released from contract. Prevented party can sue and seek damages
If the contract is impossible and neither party is responsible what happens
discharge by frustration.
For example if musician cannot perform due to fire, sickness, conscription to army, postponed (non-occurrence)
What is an actual breach of contract
When one party fails to put forward any performance or if the performance is so bad someone is deprived (injured party)
What is anticipatory breach? When is it express or implied?
occurs before performance when one party shows they will not perform contract
Express= when you will not do it
implied= doing something which makes it impossible to satisfy contract
What is repudiatory breach
Really serious where injured party can decide to continue or end contract
What is an alternative dispute resolution?
Parties with dispute use any method to find resolution
methods include:
Arbitration (use of independent person picked by both and acts like judge)
mediation (independent third party helps)
What is the Hadley x Baxendale rule
You can only claim damages for losses that were predictable or discussed beforehand
What are the three types of injunction
Mandatory- take steps to undo breach (rare) such as demolishing building
Prohibitory- courts stop someone doing something which breaches contract e.g. working for competitor
Asset freezing- court prevents someone selling assets when trying to hide after being sued
Exclusion Clause
Parts of contract that shield party from being fully responsible if they break promises. Courts side with those avoiding responsibility
What is the statutory test of reasonableness under UCTA
Whether it is fair and reasonable, with regard to all the circumstances which were, or which ought to have been known to the parties when the contract was made
What is specific performance
Specific performance is a legal remedy where a court orders a party to fulfil the terms of a contract. This typically occurs when financial compensation is insufficient, such as in contracts involving unique items (e.g., rare artwork, antiques) or real estate, where a buyer cannot simply find a replacement on the open market.
What protects expectation interest and reliance interest of a claimant
amount of money needed to put claimant in position if contract was performed
seeking to reclaim money in performing breached contract
What does UCTA only apply to
Commercial contract between business
