Introduction to Private Law 2024/25 - Contractual Remedies
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Under what condition can a debtor refuse performance according to the German $ 275 BGB?

  • When performance requires expense and effort grossly disproportionate to the interest of the creditor (correct)
  • When performance can be achieved at any cost
  • When performance requires minimal expense or effort
  • When performance is significantly beneficial to the creditor

What principle does the German law emphasize regarding the claim for performance?

  • Claiming performance is sometimes not useful even if it is due (correct)
  • Claiming performance is always effective regardless of circumstances
  • Performance claims are generally limited to monetary values only
  • The creditor has an unconditional right to claim performance without limitations

What can be inferred about the relationship between contracting parties in civil law jurisdictions?

  • They must always adhere to the principles of good faith in their dealings (correct)
  • They can avoid obligations if the costs are too high
  • They can demand performance without considering mutual benefits
  • They have unlimited rights to claim performance at all times

What principle does $ 241 (1) BGB highlight regarding the claim for performance?

<p>The claim for performance is generally applicable unless it leads to a loss for the debtor (B)</p> Signup and view all the answers

What does binding force in civil law primarily allow a creditor to do?

<p>Seek performance of the contract in natura (D)</p> Signup and view all the answers

In common law, what is the primary remedy available to creditors when debtors fail to perform?

<p>Monetary compensation (C)</p> Signup and view all the answers

Which of the following best summarizes the view of contracts in civil law jurisdictions?

<p>Contracts are viewed as moral obligations that require adherence (B)</p> Signup and view all the answers

What argument may be difficult for the debtor to leverage against the creditor's claim for performance?

<p>That the creditor has little interest in the contract (C)</p> Signup and view all the answers

What does the concept of 'performance in natura' imply for creditors?

<p>They can demand a specific item or action as agreed (D)</p> Signup and view all the answers

How does common law differ in its treatment of contract breaches compared to civil law?

<p>Common law primarily awards monetary compensation rather than enforcing performance (D)</p> Signup and view all the answers

What is a characteristic rule regarding the time required for a debtor to perform their obligations?

<p>Time for performance must be reasonable as per the circumstances (D)</p> Signup and view all the answers

If a debtor does not deliver what was agreed upon in a contract, how can the creditor respond under civil law?

<p>The creditor can sue for performance or seek delivery of goods (C)</p> Signup and view all the answers

What is the primary contractual remedy discussed in the content?

<p>Specific performance (B)</p> Signup and view all the answers

In which type of law is the claim for specific performance regarded as a natural remedy?

<p>Civil law (C)</p> Signup and view all the answers

Which of the following is NOT a requirement for claiming specific performance?

<p>Proof of damages suffered (A)</p> Signup and view all the answers

Which countries exemplify the civil law approach regarding specific performance?

<p>Germany, France, and Poland (B)</p> Signup and view all the answers

What role does a court play in the context of specific performance in civil law jurisdictions?

<p>Enforces performance of the contract (D)</p> Signup and view all the answers

Which of the following statements reflects the common law view on specific performance?

<p>Specific performance is a secondary remedy. (B)</p> Signup and view all the answers

What is a situation where the breaching party may not be compelled to perform their obligations?

<p>If performance is impossible (C)</p> Signup and view all the answers

What is the binding force of a contract in relation to specific performance?

<p>It compels performance by the breaching party. (C)</p> Signup and view all the answers

What must performance in a contract generally match?

<p>The quality of readily available goods (D)</p> Signup and view all the answers

In English law, what remedy is typically available to a buyer when the goods delivered are not unique?

<p>Claim for damages (B)</p> Signup and view all the answers

In the case discussed, what was the main issue with the office building's tiles?

<p>They had cosmetic defects due to corrosion (A)</p> Signup and view all the answers

Which directive addresses the issue of consumer sales and non-conforming goods delivered by a professional seller?

<p>European Directive 1999/44 (B)</p> Signup and view all the answers

Which legal consequence is mentioned regarding a legally binding promise?

<p>It demands a specific performance regardless of cost (B)</p> Signup and view all the answers

What is generally the legal view in civil law jurisdictions regarding a creditor's right to performance?

<p>Performance is a right of the creditor (A)</p> Signup and view all the answers

What was the approximate cost of replacing the tiles in the discussed case?

<p>Fl. 6 million (C)</p> Signup and view all the answers

What does the quote from Oliver Wendell Holmes imply about contracts?

<p>The creditor has limited options in performance claims (C)</p> Signup and view all the answers

Under English law, what is the status of specific performance as a remedy?

<p>It is an exceptional remedy (B)</p> Signup and view all the answers

What may prevent a party from bringing an action for performance under common law?

<p>Personal services required (B)</p> Signup and view all the answers

How have French courts typically viewed claims for performance?

<p>They accommodate minimal harm claims (B)</p> Signup and view all the answers

What fundamental principle underlies the concept of performance in a contract?

<p>It should reflect the agreed-upon terms (C)</p> Signup and view all the answers

How does unforeseen circumstances affect contractual performance in common law?

<p>They may be invoked to avoid performance (A)</p> Signup and view all the answers

According to the PECL, what is crucial for the principle of binding force of a contract?

<p>Parties must not escape from being bound (D)</p> Signup and view all the answers

In the Dutch case referenced, what was the conclusion of the court regarding the debtor's obligation?

<p>The debtor must replace the tiles despite the visual imperfection (C)</p> Signup and view all the answers

In cases of consumer sales, what options does the consumer have when goods are found to be non-conforming?

<p>Repair or replacement, or price reduction (D)</p> Signup and view all the answers

What can happen if a party does not abide by a court decision to perform?

<p>An official can enforce the decision by taking goods or money. (B)</p> Signup and view all the answers

In which situation would claiming performance be considered futile?

<p>When the item sold is stolen before delivery is due. (C)</p> Signup and view all the answers

What is an example of objective impossibility regarding contract performance?

<p>A wedding dress manufacturer delivering on a date after the wedding. (C)</p> Signup and view all the answers

When is performance considered to impose unreasonable effort or expense on the debtor?

<p>When the debtor must expend excessive resources or effort. (B)</p> Signup and view all the answers

According to the article, in which scenario can a creditor not successfully claim performance?

<p>When a specific person is required to perform the contract. (D)</p> Signup and view all the answers

Which of the following scenarios does NOT illustrate a claim for damages due to breach of contract?

<p>An athlete is unable to run due to an injury before the event. (B)</p> Signup and view all the answers

What allows for a claim for damages in artist contracts according to the article?

<p>Provision for artistic performance of a personal nature. (A)</p> Signup and view all the answers

What would be a reasonable expectation of the seller concerning a ring dropped in a river?

<p>To accept the loss due to the impracticality of retrieval. (A)</p> Signup and view all the answers

Flashcards

Civil Law

Civil law systems typically favor forcing debtors to fulfill contract terms.

Common Law

Common law systems often prioritize monetary compensation over specific performance, unless it is impractical or impossible.

Monetary Compensation

Financial recompense for a breach of contract.

Performance in Natura

Enforcing a contract by making the debtor perform the agreed-upon actions.

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Contractual Obligation

The requirement imposed by a contract on one party to do or refrain from doing something.

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Breach of Contract

Failure to fulfill the terms stipulated in a contract.

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Specific Performance

A court order compelling a party to complete the exact agreement terms in a contract. Like forcing someone to deliver goods.

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Futile Defect

A defect in performance that does not prevent the fulfillment of the contract.

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Specific Performance

A contractual remedy where a breaching party is legally required to fulfill their obligations as outlined in the contract.

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Requirements for Specific Performance

Criteria necessary for a non-breaching party to successfully seek specific performance of a contract in court, usually including the contract's validity and the inability to achieve adequate compensation via other remedies.

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Exceptions to Specific Performance

Situations where a breaching party doesn't have to perform their contractual obligations, often arising due to issues of performance impossibility, hardship or inconvenience.

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Civil Law vs. Common Law

Different legal systems' approaches to specific performance. Civil law frequently views it as the primary remedy, while common law often reserves it for situations where monetary compensation isn't sufficient.

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Primary Remedy

The preferred initial method of redress for contractual breaches in certain legal systems.

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Secondary Remedy

A remedy used when another (often the preferred) remedy, like money compensation, is inadequate to solve the issue.

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Binding Force of Contract

The legal principle stating that valid contracts are mandatory and enforceable.

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Monetary Compensation

A remedy for contractual breaches that involves monetary payment to the wronged party.

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Impossibility of Performance

A situation where a party cannot fulfill a contractual obligation due to circumstances beyond their control.

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Objective Impossibility

Impossibility of performance that is not caused by the actions of a party, but an external factor like theft or natural disaster.

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Futile Performance

A performance that is no longer meaningful or useful because of circumstances beyond the party's control

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Unreasonable Expense

Performance that is possible, but would cause disproportionately high cost or effort beyond what is reasonable.

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Personal Services

Performance that relies on specific personal skills or qualities of the debtor.

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Damages or Termination

Alternatives for breach of contract for personal services, instead of forcing performance.

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Court Enforcement

Legal action that can force a party to fulfill a contract.

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Defaulting Party

A party to a contract who fails to fulfill their obligations according to the court decision.

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Specific Performance

A court order forcing a party to fulfil a contract's terms.

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Damages (Common Law)

Monetary compensation for a breached contract, instead of specific performance.

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Civil Law Performance

Civil law systems typically enforce contract performance.

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Consumer Sales Directive

European directive outlining remedies (e.g., repair/replacement) for defective consumer goods.

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Performance in Natura

Enforcing contract fulfilment using actions, not monetary compensation.

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Exceptional Remedy

Specific performance in common law is a special case, not the usual approach.

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PECL

Principles of European Contract Law.

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Frustration (Impossibility)

Circumstances making contract performance impossible.

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Specific Performance

A court order forcing a party to fulfill the exact terms of a contract, not just pay money.

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Civil Law & Performance

In civil law, courts often order specific performance, even for minor defects.

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Common Law & Compensation

In common law systems, monetary compensation rather than specific performance may be preferred unless the damages are significant or the item is unique.

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Cost vs. Defect

The cost of specific performance can be high even if the defect, such as building faults, is not significant.

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Contractual Remedy (Specific)

Legal requirement for parties to follow their promises in a valid contract.

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Holmes' quote & Freedom

Holmes suggests that the law does not make a promise come true; rather it leaves the promisor free to choose their action.

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Dutch Case (Tiles)

A Dutch court ordered repairs for cosmetic defects in a building, even if the cost was substantial, and the flaws were not noticeable.

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Commercially Viable Solution

A solution or product which is able to make a financial gain for the producers.

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Civil Law Performance

In civil law, the usual way to enforce a contract is to force performance of the obligation.

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Futile Defect

A defect in performance that doesn't affect the contract's value/purpose.

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Disproportionate Expense

Performance will cost much more than the contract's benefit to the other side.

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Impossibility of Performance

A contract obligation cannot be fulfilled due to external factors.

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Unreasonable Expense

Performance is possible but too costly or inconvenient in relation to what is being asked for.

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Study Notes

Introduction to Private Law 2024/25

  • Course material covers contractual remedies: specific performance, termination, and damages.
  • Meeting 2.2 focuses on these remedies with a slightly altered format compared to previous meetings.
  • Readings are divided into three sections, each with an introductory text.

Meeting 2.2 - Contractual Remedies

  • Contractual obligations are key after a contract is formed and understood.
  • Breach of contract occurs when a party fails to fulfill their agreed-upon obligations.
  • Non-breaching party has access to remedies, which vary by jurisdiction.
  • Three key remedies discussed: specific performance, termination, and damages.

Section 1 - Specific Performance

  • Readings include work by Smits, Jan; Peel, Edwin; and other relevant case studies.
  • Requirements for specific performance vary in civil and common law systems.

Section 2 - Termination

  • Readings include work by Smits, Jan; Rowan, Selen; and Cartwright, John, discussing aspects of contractual termination.
  • French civil code's termination methods are outlined, with detail on criteria, and consequences.
  • English termination procedures are explored; and the classification of contract terms (conditions, warranties, etc.) is key.
  • The Sale of Goods Act 1979 (sections 13, 14, and 15) are referenced.

Section 3 - Damages

  • Readings include work by Smits, Jan; Kotz, Hein; Peel, Edwin; and Stanhope Kenny, concerning damages.
  • Civil and common law approaches to damages are contrasted and analyzed.
  • Key components include: breach, loss, causation, and attributability of damages.
  • Concepts like remoteness of damages (foreseeability) are outlined.

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Description

This quiz focuses on the essential concepts of contractual remedies in private law, highlighting specific performance, termination, and damages. Meeting 2.2 emphasizes the unique aspects of these remedies across different legal systems. Delve into key readings and case studies for a comprehensive understanding of the topic.

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