Chapter 5

Question 1

Performance of the contract

Answer 1

Fulfilling the obligations under a contract and meeting it’s end

Question 2

How can a contract be discharged ?

Answer 2

Agreement: parties agree to release each other from their promises

Frustration: a contract may become impossible to carry out

Breach: a party breaks the agreement by failing to perform any of their duties

Question 3

Explain breach of contract and breach of warranty

Answer 3

A contract is breached if one party fails to perform the contract properly or at all and does not automatically discharge either party from fulfilling their obligations. If the breach is warranty the only remedy for the injured party is to seek damages. He cannot repudiate his liabilities

Question 4

What is in innominate term

Answer 4

A term that is neither condition or warranty

Question 5

What can the innocent party do if another party repudiates the contract ?

Answer 5

Affirm the contract or accept the repudiation

Question 6

How can a breach occur?

Answer 6

By one party giving notice that obligations will not be fulfilled in due time (anticipatory breach) or one party performing the contract badly or not at all (actual breach)

Question 7

What does it mean to affirm the contract?

Answer 7

Proceed to honour the obligations under it. The innocent party can enjoy the usual rights and claim for full contract price. However, the affirming party must have a legit reason to keep the contract alive rather than go through to claim damages

Question 8

The courts will only award the remedy that the injured party applied for

Answer 8

True

Question 9

The injured party can be entitled to compensation for money spent in reliance on the contract and wasted as a result.

Answer 9

True

Question 10

Liquidated damages

Answer 10

specifies a predetermined amount of money that must be paid as damages for failure to perform under a contract

Question 11

Unliquidated damages

Answer 11

normal damages that are not liquidated and are assessed by the courts. They must not be too remote and must compensate rather than reward the client

Question 12

Damages should compensate and note reward the plaintiff of breach

Answer 12

True

Question 13

A claim for damages which is commenced outside a statutory limitation period is barred under the Limitation Act 1980

Answer 13

True

Question 14

Limitation periods

Answer 14

Simple contract and tort - 6 years (reduced to 2 years in cases of emergencies)
Specialty contract (deeds) - 12 years

Question 15

When does the limitation period begin?

Answer 15

on the date the contract was breached or the tort was committed.

Question 16

Breach of condition

Answer 16

The injured party’s future obligations can be repudiated because a core term has been broken. The party can repudiate any further obligations and claim damages from the left in breach for any loss