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Questions and Answers
What can a non-breaching party seek in addition to damages for breach of contract?
What can a non-breaching party seek in addition to damages for breach of contract?
Which type of breach is characterized by a complete failure to perform contractual obligations?
Which type of breach is characterized by a complete failure to perform contractual obligations?
What distinguishes substantial performance from less than substantial performance?
What distinguishes substantial performance from less than substantial performance?
Which of the following is considered a condition in a contract?
Which of the following is considered a condition in a contract?
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What occurs in an anticipatory breach?
What occurs in an anticipatory breach?
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Which of the following is NOT a type of contractual term?
Which of the following is NOT a type of contractual term?
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In the case of Associated Newspapers v Bancks, what was the main issue regarding the contract?
In the case of Associated Newspapers v Bancks, what was the main issue regarding the contract?
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What signifies the importance of a condition in a contract according to the Tramways test?
What signifies the importance of a condition in a contract according to the Tramways test?
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What happens if there is an anticipatory breach of the entire contract?
What happens if there is an anticipatory breach of the entire contract?
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What is necessary for a breach of an innominate term to permit termination of the contract?
What is necessary for a breach of an innominate term to permit termination of the contract?
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In the context of contractual terms, what distinguishes a warranty from an innominate term?
In the context of contractual terms, what distinguishes a warranty from an innominate term?
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What was the essential issue in the case of Bettini v Gye?
What was the essential issue in the case of Bettini v Gye?
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What legal remedy is typically available for a breach of warranty?
What legal remedy is typically available for a breach of warranty?
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What must a party demonstrate to terminate a contract due to a breach of a warranty?
What must a party demonstrate to terminate a contract due to a breach of a warranty?
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In the event of an anticipatory breach, what can the non-breaching party do?
In the event of an anticipatory breach, what can the non-breaching party do?
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What must a non-breaching party do to exercise the right to terminate a contract?
What must a non-breaching party do to exercise the right to terminate a contract?
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What type of term would typically not allow for terminations if breached?
What type of term would typically not allow for terminations if breached?
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In the case of Holland v Wiltshire, which breach did not lead to the loss of the right to terminate by affirmation?
In the case of Holland v Wiltshire, which breach did not lead to the loss of the right to terminate by affirmation?
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What happens when a party affirms a breach of contract?
What happens when a party affirms a breach of contract?
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What was the specific request made by H in the Holland v Wiltshire case?
What was the specific request made by H in the Holland v Wiltshire case?
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If a party knows about a breach and continues with the contract, what is the result?
If a party knows about a breach and continues with the contract, what is the result?
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What classification did the court assign to the 'rehearsal promise' in Bettini v Gye?
What classification did the court assign to the 'rehearsal promise' in Bettini v Gye?
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What was the primary reason B could terminate the contract with AN?
What was the primary reason B could terminate the contract with AN?
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In the case of Cehave v Bremer, why could C not reject the goods and terminate the contract?
In the case of Cehave v Bremer, why could C not reject the goods and terminate the contract?
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Which condition must be met for the breach of an intermediate term to allow for termination?
Which condition must be met for the breach of an intermediate term to allow for termination?
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What did the Tramways test determine regarding the contract between B and AN?
What did the Tramways test determine regarding the contract between B and AN?
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What was the main reason that G could not terminate the contract in Bettini v Gye?
What was the main reason that G could not terminate the contract in Bettini v Gye?
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What kind of breach allows for the right to terminate a contract?
What kind of breach allows for the right to terminate a contract?
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Which of the following statements best describes the term regarding the pellets in Cehave v Bremer?
Which of the following statements best describes the term regarding the pellets in Cehave v Bremer?
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In the case of Holland v Wiltshire, what was the finding regarding the payment date?
In the case of Holland v Wiltshire, what was the finding regarding the payment date?
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What implication does the classification of a term as 'intermediate' have in contract law?
What implication does the classification of a term as 'intermediate' have in contract law?
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What constitutes an anticipatory breach of a condition?
What constitutes an anticipatory breach of a condition?
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In terms of breach consequences, which of the following is NOT true regarding a warranty?
In terms of breach consequences, which of the following is NOT true regarding a warranty?
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What was the essential aspect of the contract between B and AN concerning the cartoon?
What was the essential aspect of the contract between B and AN concerning the cartoon?
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What aspect of B's reasonable excuse for missing rehearsals was relevant in Bettini v Gye?
What aspect of B's reasonable excuse for missing rehearsals was relevant in Bettini v Gye?
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Why did W in Holland v Wiltshire have the right to terminate the contract?
Why did W in Holland v Wiltshire have the right to terminate the contract?
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How does less than substantial performance of a condition affect a contract?
How does less than substantial performance of a condition affect a contract?
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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).
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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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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.