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Questions and Answers
In the case of A purchasing 50 t-shirts a week from B, how would this agreement be treated by the courts?
In the case of A purchasing 50 t-shirts a week from B, how would this agreement be treated by the courts?
What happens if there is a breach of one of the divisible contracts in A's agreement with B?
What happens if there is a breach of one of the divisible contracts in A's agreement with B?
Why was P not entitled to claim the profit-share payment in the case of Phillips v Ellinson Bros Pty Ltd?
Why was P not entitled to claim the profit-share payment in the case of Phillips v Ellinson Bros Pty Ltd?
How did the court classify P's employment contract in the Phillips case?
How did the court classify P's employment contract in the Phillips case?
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In the case of Government of Newfoundland v The Newfoundland Railway Co, what was the agreement regarding land for construction?
In the case of Government of Newfoundland v The Newfoundland Railway Co, what was the agreement regarding land for construction?
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What was the critical issue in Phillips v Ellinson Bros regarding P's employment?
What was the critical issue in Phillips v Ellinson Bros regarding P's employment?
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What does the term 'divisible contracts' imply in business law?
What does the term 'divisible contracts' imply in business law?
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In the context of divisible contracts, what is a key characteristic of a breach involving the delivery of goods?
In the context of divisible contracts, what is a key characteristic of a breach involving the delivery of goods?
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Study Notes
Divisible Contracts
- Courts may treat a single contract as multiple divisible contracts for legal interpretation.
- Example: An agreement to purchase 50 t-shirts weekly for one year can be viewed as 50 distinct contracts.
- Breaching one contract (e.g., failure to deliver one week) does not invalidate the others, which remain enforceable.
Case Study: Phillips v Ellinson Bros Pty Ltd
- Plaintiff (P) worked full-time as a manager but reduced hours to 60 per month without modifying the contract.
- Contract stipulated P would receive a profit share at the end of two years based on company profits.
- At the end of two years, P claimed profit share; the company (EB) contended P breached the contract by not fulfilling work hours.
- Key issue: Whether the contract was indivisible (not fully performed) or comprised of divisible contracts (one of which might be fulfilled).
- Decision: P was denied the profit-share payment due to breaching the indivisible contract, emphasizing the necessity of full contractual performance.
Case Study: Government of Newfoundland v The Newfoundland Railway Co
- The Government of Newfoundland (GoN) contracted with The Newfoundland Railway Co (NRC) for railway construction.
- GoN promised 25,000 acres of land for every five-mile section completed.
- The project halted after seven sections, raising questions about the fulfillment of contractual obligations.
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Description
Dive into the crucial elements of divisible contracts within performance and breach of contracts in business law. This quiz explores how courts may interpret a single contract as multiple contracts, illustrated by practical examples. Prepare to enhance your understanding of contract law fundamentals.
