Contract Breach and Termination

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What is the consequence of a breach of contract where the obligations are dependent?

The innocent party can terminate the contract and recover damages.

The party in breach is unable to sue upon the contract. (correct)

The party in breach can still sue upon the contract.

The contract is automatically terminated without notice.

What must the innocent party do after deciding to terminate the contract?

Wait for the party in breach to remedy the breach.

File a lawsuit against the party in breach.

Communicate to the party in breach that they have elected to terminate the contract. (correct)

Send a written notice to the party in breach.

What happens to future obligations when the innocent party terminates the contract?

They are converted into conditional obligations.

They are renegotiated by the parties.

They remain binding and unchanged.

They are prospectively discharged. (correct)

What is a key factor for the court to consider when a breach of contract is remedied before termination?

The steps taken by the party in breach to remedy the breach. Signup and view all the answers

What remains binding after the contract is terminated?

Past obligations. Signup and view all the answers

When can the innocent party elect to affirm the contract?

When the innocent party can perform their outstanding duties without the assistance of the other party Signup and view all the answers

What determines the assessment of damages in the event of anticipatory breach?

The time of the anticipatory breach Signup and view all the answers

What is a key factor in determining whether a contract has been breached?

The terms of the contract Signup and view all the answers

What is a consequence of terminating a contract for breach?

Damages are assessed at the time of termination Signup and view all the answers

What is a key consideration for the innocent party in deciding whether to affirm or terminate a contract?

The legitimate interest in affirming the contract Signup and view all the answers

What happens if the innocent party terminates the contract without a sufficient breach?

The innocent party may be considered to have breached the contract. Signup and view all the answers

What is the significance of classifying contractual terms into conditions, warranties, and intermediate terms?

It helps to determine the right to terminate the contract. Signup and view all the answers

What is a potential solution to the difficulty in determining the consequences of a breach?

All of the above. Signup and view all the answers

What is the difficulty faced by the innocent party in response to a breach?

Classifying the breached term as a condition, warranty, or innominate term. Signup and view all the answers

What is the consequence of a breach of an innominate term?

The breach may be sufficient to justify termination, depending on its seriousness. Signup and view all the answers

What is a crucial factor in determining whether an injured party can rescind or terminate a contract in the case of a prospective inability?

The seriousness of the consequences of the breach Signup and view all the answers

What is an effect of an anticipatory breach of contract on the innocent party?

The innocent party may elect to affirm the contract and continue with performance Signup and view all the answers

In what situation is the innocent party not allowed to continue with performance despite an anticipatory breach?

When the innocent party needs the cooperation of the party in breach Signup and view all the answers

What is a circumstance in which the innocent party will be deemed to have an insufficient legitimate interest in performing the contract?

When the performance would be 'wholly unreasonable' or 'perverse' Signup and view all the answers

What is the limitation on the innocent party's ability to affirm the contract and continue with performance, as stated by Lord Reid in White and Carter (Councils) Ltd?

The innocent party should not saddle the other party with an additional burden unless they have a legitimate interest in performing the contract Signup and view all the answers

What happens when a party refuses to continue performing or commits an act that prevents further performance?

The other party can terminate the contract Signup and view all the answers

What is required to determine whether a repudiatory breach has occurred?

The terms of the contract and the type of term breached Signup and view all the answers

What is the consequence of a repudiatory breach?

The innocent party can elect to terminate the contract Signup and view all the answers

What is the term for a breach that occurs when the time for contractual performance has arrived and the promisor has failed to deliver?

Actual breach of contract Signup and view all the answers

Who has the burden of proving that a repudiatory breach has occurred?

The innocent party Signup and view all the answers

What option does the innocent party have when a condition or intermediate/innominate term is breached?

To terminate the contract Signup and view all the answers

What is the difference between rescission for breach and rescission for misrepresentation?

Rescission for breach ends future obligations, while rescission for misrepresentation ends all obligations Signup and view all the answers

What right does the innocent party have, regardless of whether they terminate the contract or not?

The right to sue for damages Signup and view all the answers

What is the result of a breach of contract on dependent obligations?

They are terminated immediately Signup and view all the answers

What is the significance of the case Phones 4U Ltd v EE Ltd?

It confirmed an old rule that damages for loss of bargain will only be available in certain cases Signup and view all the answers

What is the key difference between termination based on a repudiatory breach and termination based on an express termination right?

The availability of damages for loss of bargain Signup and view all the answers

What happens to the contract when the innocent party terminates it due to a breach?

It is terminated, but past obligations remain Signup and view all the answers

What is the significance of the distinction between conditions, innominate terms, and warranties?

It determines the type of remedy available Signup and view all the answers

What is the consequence of the innocent party deciding not to terminate the contract?

They are bound by the original contract terms Signup and view all the answers

What is the relevance of Topic 14 to the consequences of breach?

It deals with the right to sue for damages Signup and view all the answers

What is a consequence of an anticipatory breach?

The contract becomes voidable at the option of the innocent party Signup and view all the answers

What is a limitation on the ability of the innocent party to continue with the contract?

The need for cooperation from the breaching party Signup and view all the answers

What is an option available to the innocent party after an anticipatory breach?

Continue to perform their obligations and sue for the contract price Signup and view all the answers

What is the significance of the case Hounslow LBC v Twickenham Garden Developments?

It illustrates the limitation of the need for cooperation from the breaching party Signup and view all the answers

What is a consequence of the breaching party withdrawing their cooperation?

The innocent party is forced to terminate the contract Signup and view all the answers