Week 12

Question 1

What is discharge?

Answer 1

Termination of rights and liabilities under a contract

Question 2

what should every contract have?

Answer 2

A dispute resolution clause and a termination clause

Question 3

What are the exceptions to performance (carrying out all terms of contract)

Answer 3

1. Substantial 2. Partial 3. Divisible 4. Tender

5. Prevention

Question 4

what are some categories of frustration?

Answer 4

1. Changes of Law
2. Destruction of the subject matter
3. Personal services
4. Government intervention

Question 5

What does the law recognise about frustration?

Answer 5

that contractual obligations may become incapable of being performed

Question 6

Name 4 ways a contract can be discharged/terminated.

Answer 6

P.A.F.B.

1. Performance
2. Agreement between parties
3. Frustration
4. Breach

Question 7

What are liquidate damages?

Answer 7

fixed/calculation of fixed amount, specified in contract, of damages payable to one or either party - in the event of a breach

Question 8

What is a requirement of LDs

Answer 8

must be reasonable or genuine pre estimate of loss

Question 9

what is a penalty

Answer 9

LD that bears little relationship to the anticipated loss