Business Law Semester 2: Remedies for Breach
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Questions and Answers

What can a non-breaching party seek in addition to damages for breach of contract?

  • Delay in performance
  • Termination of the contract (correct)
  • Loan extension
  • Increased damages
  • Which type of breach is characterized by a complete failure to perform contractual obligations?

  • Partial performance
  • Anticipatory breach
  • Non-performance (correct)
  • Late performance
  • What distinguishes substantial performance from less than substantial performance?

  • Substantial performance always meets deadlines.
  • Substantial performance fulfills all terms of the contract.
  • Less than substantial performance is a complete breach.
  • Less than substantial performance offers some benefits. (correct)
  • Which of the following is considered a condition in a contract?

    <p>A term that is fundamentally essential for the contract</p> Signup and view all the answers

    What occurs in an anticipatory breach?

    <p>One party expresses unwillingness to perform before the time for performance.</p> Signup and view all the answers

    Which of the following is NOT a type of contractual term?

    <p>Anticipatory terms</p> Signup and view all the answers

    In the case of Associated Newspapers v Bancks, what was the main issue regarding the contract?

    <p>The location of the cartoon's publication changed.</p> Signup and view all the answers

    What signifies the importance of a condition in a contract according to the Tramways test?

    <p>The promise was so crucial that the promisee would not have entered the contract without it.</p> Signup and view all the answers

    What happens if there is an anticipatory breach of the entire contract?

    <p>The non-defaulting party may terminate the contract.</p> Signup and view all the answers

    What is necessary for a breach of an innominate term to permit termination of the contract?

    <p>The breach must be serious and deprive substantial benefit.</p> Signup and view all the answers

    In the context of contractual terms, what distinguishes a warranty from an innominate term?

    <p>Warranties do not cause substantial loss when breached.</p> Signup and view all the answers

    What was the essential issue in the case of Bettini v Gye?

    <p>Whether attending rehearsals was a condition or a warranty.</p> Signup and view all the answers

    What legal remedy is typically available for a breach of warranty?

    <p>Damages.</p> Signup and view all the answers

    What must a party demonstrate to terminate a contract due to a breach of a warranty?

    <p>Evidence of intent to repudiate the contract.</p> Signup and view all the answers

    In the event of an anticipatory breach, what can the non-breaching party do?

    <p>Terminate the contract and sue for damages.</p> Signup and view all the answers

    What must a non-breaching party do to exercise the right to terminate a contract?

    <p>Elect whether to terminate the contract.</p> Signup and view all the answers

    What type of term would typically not allow for terminations if breached?

    <p>A warranty.</p> Signup and view all the answers

    In the case of Holland v Wiltshire, which breach did not lead to the loss of the right to terminate by affirmation?

    <p>H's announcement of not proceeding with the sale.</p> Signup and view all the answers

    What happens when a party affirms a breach of contract?

    <p>The right to terminate the contract is lost.</p> Signup and view all the answers

    What was the specific request made by H in the Holland v Wiltshire case?

    <p>To extend the payment date.</p> Signup and view all the answers

    If a party knows about a breach and continues with the contract, what is the result?

    <p>They lose the right to terminate the contract.</p> Signup and view all the answers

    What classification did the court assign to the 'rehearsal promise' in Bettini v Gye?

    <p>Warranty</p> Signup and view all the answers

    What was the primary reason B could terminate the contract with AN?

    <p>AN breached its promise to publish the cartoon prominently.</p> Signup and view all the answers

    In the case of Cehave v Bremer, why could C not reject the goods and terminate the contract?

    <p>The breach was not serious enough.</p> Signup and view all the answers

    Which condition must be met for the breach of an intermediate term to allow for termination?

    <p>The breach must substantially deprive the non-breaching party of the benefit.</p> Signup and view all the answers

    What did the Tramways test determine regarding the contract between B and AN?

    <p>The term regarding publication was a condition.</p> Signup and view all the answers

    What was the main reason that G could not terminate the contract in Bettini v Gye?

    <p>The rehearsal promise was not a condition.</p> Signup and view all the answers

    What kind of breach allows for the right to terminate a contract?

    <p>Non-performance of a condition.</p> Signup and view all the answers

    Which of the following statements best describes the term regarding the pellets in Cehave v Bremer?

    <p>It was an intermediate term subject to specific conditions.</p> Signup and view all the answers

    In the case of Holland v Wiltshire, what was the finding regarding the payment date?

    <p>It was ruled a condition of the contract.</p> Signup and view all the answers

    What implication does the classification of a term as 'intermediate' have in contract law?

    <p>It permits different outcomes for minor and serious breaches.</p> Signup and view all the answers

    What constitutes an anticipatory breach of a condition?

    <p>The promisor demonstrates inability to perform.</p> Signup and view all the answers

    In terms of breach consequences, which of the following is NOT true regarding a warranty?

    <p>Breach of warranty requires proof of substantial consequential loss.</p> Signup and view all the answers

    What was the essential aspect of the contract between B and AN concerning the cartoon?

    <p>The location of publication within the comic section.</p> Signup and view all the answers

    What aspect of B's reasonable excuse for missing rehearsals was relevant in Bettini v Gye?

    <p>It had no relevance to the court's decision.</p> Signup and view all the answers

    Why did W in Holland v Wiltshire have the right to terminate the contract?

    <p>H failed to perform by the newly set extended date.</p> Signup and view all the answers

    How does less than substantial performance of a condition affect a contract?

    <p>It gives the non-breaching party the right to terminate.</p> Signup and view all the answers

    Study Notes

    Termination: Overview

    • Non-breaching party can seek damages or terminate the contract.
    • Termination eligibility depends on the type and nature of the breach.

    Types of Breaches

    • Non-performance: Complete failure; no action taken (e.g., Varley v Whipp).
    • Partial performance: Any performance less than complete; includes:
      • Substantial performance: Plaintiff still receives expected benefits.
      • Less than substantial performance.
    • Late performance: Breach occurs when obligations performed after due date.
    • Anticipatory breach: Party indicates inability or unwillingness to perform before due date.

    Types of Contractual Terms

    • Conditions: Fundamental importance; if not fulfilled, can terminate contract.
      • Established by the Tramways test.
    • Warranties: Lesser importance; breach permits damages but not termination unless it amounts to repudiation.
    • Innominate/intermediate terms: Breach can permit termination if serious and deprives substantial benefit.

    Breach of Conditions

    • Associated Newspapers v Bancks: B terminated due to AN's breach of front-page promise; condition was fundamental, allowing termination.
    • Holland v Wiltshire: Timely payment condition; failure to perform entitled W to terminate contract.

    Anticipatory Breach of Conditions

    • Recognized if context indicates inability or unwillingness to perform.
    • Hochster v de la Tour: H could terminate contract due to anticipatory breach, allowing for damages.

    Breach of Intermediate/Innominate Terms

    • Term may cause serious loss yet be breached without serious consequence.
    • Cehave v Bremer: C could not terminate for minor breach as substantial benefit remained intact.

    Electing to Terminate

    • Termination requires active choice; non-breaching party must communicate intent to terminate.

    Loss of Right to Terminate: Affirmation

    • Affirmation occurs when a party continues after acknowledging breach.
    • Right to terminate can be lost if no action is taken post-breach acknowledgment.

    Case Study: Holland v Wiltshire

    • Three breaches by H:
      • Initial failure to perform: W's right to terminate lost due to affirmation.
      • Failure by the first extension: Again, affirmation led to loss of termination right.
      • Announcement of non-performance constituted repudiation, allowing W to terminate contract.

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    Related Documents

    7.4 Termination S02Y24.pptx

    Description

    This quiz covers Topic 7 on Remedies for Breach in Business Law. It explores the options available to the non-breaching party, including termination of the contract based on the type and nature of the breach. Test your understanding of contract law and the implications of breaches of agreement.

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