Performance & Breach Flashcards
Define breach of contract
Party, without lawful reason, fails or refuses to perform whats due from them under the contract
What are the two main remedies for breach?
Damages
Termination
What did Cutter v Powell find?
Where non performance is due to frustration, a court may award a just sum in respect of the valuable benefit conferred on the other party.
What is quantum meruit?
If a contract has only been partly performed and the right price has not arisen, court may award sum for benefit acrued
What happens in an anticipatory breach?
Innocent party can accept A breach, regard contract as terminated and sue for damages
Can also affirm contract.
What are the two exceptions for affirming an anticipatory breach?
Innocent part has no interest in performing contract and damages acceptable
Innocent party’s performance needs other party to do something
What is termination?
Parties have no need to carry out future obligations, can claim damages as well ie loss of profits
What are the two conditions you can get a termination for?
Serious breach of an innominate term
Breach of a condition
What are conditions?
Most important terms of C, breach allows for termination
What are warranties?
Less important term, breach only entitles damages
What are time clauses recognised as?
Conditions
What does the sale of goods act s11 say?
If breach is so minor its unreasonable for buyer to reject goods it can be treated as just a breach of warranty.
What are innominate terms?
Nameless terms. Where a C term is broad, potentially giving rise to serious breach, its innominate.
What is the process for termination?
Innocent party accepts breach and communicates termination to other party.
