Termination of contract

Question 1

How is a contract discharged

Answer 1

By complete and exact performance

Question 2

What important qualification do the courts apply to the complete and exact performance

Answer 2

As long as there is substancial performance of a parties contractual obligation the contract will be discharged
They can seek refress/ compensation for that part that isnt complete and exact

Question 3

What are most contracts e.g employment/ building

Answer 3

Severable

Question 4

What happens if one party prevents performance

Answer 4

The offer of performance is suffiecient to discharge the contract they can go on to seek compensation

Question 5

In what 4 circumstances can a contract be discharged by frustration

Answer 5

• Destruction of the subject
• Personal inability to perform a contract of personal service
• Gov. interevntion
• Non occurence of an event which is the sole purpose of the contract

Question 6

What happen regulations are put in place by the Law Reform (frustrated contract) act 1943

Answer 6

Any money paid under the contract prior to frustration is repaid
Any sums due cease to be payable
If one party has gained a valuable benfit they may be told to pay compensation to the other party

Question 7

What is an actualy breach of contract `

Answer 7

Actual breach occurs at the time performace of the contract was due and when

• one party fails to put forward any sort of performance
• The performnace is so inadequate the injured paety is deprived from the whole benefits of the contract

Question 8

What is an anticapatory breach and the types

Answer 8

This is where before the performance of the contract one party tells or there action means they will not be able to perform
Express / implied

Question 9

What can the injured party do when such a breach has occured

Answer 9

assume the contract as being discharged and seek damages

or continue with the contract and seek payment

Question 10

What are the issues for remoteness of damages

Answer 10

losses which are;

1) natural consqequnce of breach
2) Both parties knows about the possible consequences (reasonable foreseable)

Question 11

What are damages intented to do for the injured party

Answer 11

restore the injured party to a postion if the contract had taken place

Question 12

What about damages for loss of enjoyment

Answer 12

not usually recoverabl unless principle purpose is enjoyment.

Question 13

Explain damages for loss of bargain

Answer 13

Buyer —> Seller ; seller refuces damages would be the difference of buying the good from somewhere else

Buyer —> Seller ; buyer refuses the difference between contracted selling price and the price sold at

Question 14

Reliance losses

Answer 14

damages for expenses occured prior to the breach e.g travel ect

Question 15

Explain mitigation of loss

Answer 15

The injured party must take all the REASONABLE steps in order to limit their loss

Question 16

What if a seller is able to sell the product for a higher price after a breach

Answer 16

The seller is entitled to only nominal damages.

Question 17

What are liquidated damages

Answer 17

When the contract provides for a fixed payment if in breach liquidated damages are an estimate and therefore enforcable

Question 18

What are penalty clauses

Answer 18

When the contract provides for a fixed payment if in breach penantly clauses are excessive and arbitary therefore unenforable

although if the penalty is being used a deterent eg in a car park this may be enforceable

Question 19

What are equitable remedies and when may they be awarded

Answer 19

The court are unlikely to decide to award equitable remedies if
damages are enough
claimant acted unfairly
claimant delayed brining action to court

Question 20

What are specififc performance remedies

Answer 20

Order to perform part of contract

• usually for sale of land houses
• or unique / irresplacable items
• not performance of service as this would be unfair to ask the parties to work together after dispute