remedies

Question 1

What is the aim of awarding damages for breach of contract?

1. To punish the party who has broken the contract.
2. To restore the innocent party to the position he was in before the contract was made.
3. To ensure the party who has broken the contract suffers a reasonable penalty.
4. To put the innocent party in the same financial position he would have been in had the contract been performed.

Answer 1

4. To put the innocent party in the same financial position he would have been in had the contract been performed.

Question 2

The case of Hadley v Baxendale (1854) laid down which of the following?

1. Test of reasonableness
2. Test of remoteness of damage
3. Test of measure of damages
4. Rules of specific performance

Answer 2

2. Test of remoteness of damage

Question 3

Which one of the following statements is false when discussing specific performance?

1. Specific performance is an equitable remedy.
2. Specific performance is a court order to the party in breach of contract to perform his obligations under the contract.
3. Where damages would be an adequate remedy specific performance will not be granted.
4. Specific performance may be awarded if one party fails to carry out his contract of employment.

Answer 3

4. Specific performance may be awarded if one party fails to carry out his contract of employment.

Question 4

Where a contract states the sum to be paid in the event of a breach of contract, the stated sum is known as:

1. Unliquidated damages
2. Liquidated damages
3. Contract sum
4. Stated damages

Answer 4

2. Liquidated damages

Question 5

Which of the following is not a remedy?

1. An injunction
2. An order for specific performance
3. An award of damages
4. A penalty clause

Answer 5

4. A penalty clause

Question 6

Which of the following is not an equitable remedy?

1. Damages
2. Specific performance
3. Injunctions

Answer 6

1. Damages

Question 7

When faced with a breach of contract, what action will the court expect an injured party to take?

1. To wait until the full consequences of the breach are realised. No action is required until the full consequences of the breach are known.
2. To mitigate his/her losses
3. To take any measures possible to lessen the effects of the breach
4. To take out a new contract with another party, regardless of costs, to minimise any negative effect for the injured party

Answer 7

2. To mitigate his/her losses

Question 8

In the lecture we covered 4 remedies. Which one of the following is not a remedy?

1. Damages
2. Specific Performance
3. Injunctions
4. Repudiation

Answer 8

4. Repudiation

Question 9

In the leading case of Hadley v Baxendale, the court identified two heads of loss upon which an innocent party may claim damages in the event of a breach.

Which of the following accurately describes these heads of loss?

1. Nominal and special damages
2. Usual/normal and special damages
3. Natural and special damages
4. Predictable and special damages

Answer 9

2. Usual/normal and special damages

Question 10

Which of the following cases concerned an award for loss of amenity when a swimming pool was constructed to the wrong depth?

1. Farley v Skinner (No. 2)
2. Ruxley Electronics and Construction Ltd v Forsyth
3. Dunlop Pneumatic Tyre Co Ltd v New Garage Motor Co
4. Brace v Calder

Answer 10

2. Ruxley Electronics and Construction Ltd v Forsyth