Chapter 6

Question 1

Remedy

Answer 1

Given to the plaintiff when defendant breaches a contract. Can be:

• monetary compensation
• enforcement of some right owed to the plaintiff

Question 2

Breach of Condition

Answer 2

• Terminate contract and sue for damages

- Carry on with contract by treating the breach as a breach of warranty and claim damages

Question 3

Breach of Warranty

Answer 3

-Only entitled to claim damages

Question 4

Breach of Innominate term

Answer 4

-Depends

Question 5

Damages

Answer 5

Monetary compensation with the purpose to compensate the injured party for losses suffered

Question 6

Rules for Damages

Answer 6

• The injured party is to be placed as far as possible in the same position he might be in if the contract had been carried out.
• Court will award damages only for losses which
• -arise naturally from the breach
• -reasonably supposed to have been in the minds of the parties when they made the contract (special circumstances not in the knowledge do not count)
• Damages may be awarded even though the actual amount may be difficult to asses or for non pecuniary losses

Question 7

Liquidated Damages and Penalties

Answer 7

-Liquidated Damages Term
Sum fixed i genuine pre-estimate for the loss which is likely to happen.
-Penalty
Sum is excessively harsh and designed to punish the defaulting party rather than compensate the injured party.

Question 8

Mitigation

Answer 8

Although damages are a remedy available to injured party as right, the injured party must take reasonable steps to mitigate his loss.

Question 9

Quantum Meruit

Answer 9

• work has been done under a contract which does not specify price
• some work has been done by one party under a contract which was repudiated by the defendant
• work was done by one party and accepted by another under a contract later discovered to be void
• there was part performance of a contract which was voluntarily accepted by the other
• contract is frustrated but the other party has enjoyed a valuable benefit

Question 10

Equitable Remedies (Common Law)

Answer 10

Remedies that have developed alongside common law and exist to fill a gap in contract law often when monetary compensation may not be adequate.

Question 11

Specific Performance

Answer 11

Order of court commanding a person to perform his contractual obligations. Given to enforce a positive obligation owed to the plaintiff.

WILL NOT BE GRANTED IF:

• Damages (compensation) are an adequate remedy
• The contract breached involves personal services
• Performance of the contract would require constant supervision of the court

Question 12

Injunction

Answer 12

Order of court restraining a person from breaching his contract. Can be used to restrain a defendant from breaching a negative obligation.