Remedies for Breach of Contract

<p>An obligation imposed by law without a formal agreement (B)</p> Signup and view all the answers

<p>That it will be covered under the forthcoming contract (B)</p> Signup and view all the answers

<p>No loss of value or amenity (A)</p> Signup and view all the answers

<p>If the pool's depth was essential and warranted reconstruction (D)</p> Signup and view all the answers

<p>They found expectation loss to be too speculative (A)</p> Signup and view all the answers

<p>Expenditure already incurred on the production (A)</p> Signup and view all the answers

<p>When there is a breach of condition (D)</p> Signup and view all the answers

<p>Some expenditures were too remote to recover (B)</p> Signup and view all the answers

<p>A very serious breach of an innominate term (C)</p> Signup and view all the answers

<p>Expenses incurred based on reliance on a contract (A)</p> Signup and view all the answers

<p>The court allowed recovery of all wasted expenditures (D)</p> Signup and view all the answers

<p>They cannot change their mind about the termination (A)</p> Signup and view all the answers

<p>Damages are awarded, but the contract remains effective (B)</p> Signup and view all the answers

<p>They may need to claim reliance loss damages (C)</p> Signup and view all the answers

<p>When there is a discharge or affirmation of the contract (C)</p> Signup and view all the answers

<p>A breach that can range from minor to very serious (D)</p> Signup and view all the answers

<p>Breach of a condition allows termination, while a warranty does not (C)</p> Signup and view all the answers

<p>Affirmation of a contract prevents subsequent termination (C)</p> Signup and view all the answers

<p>They should arise naturally from the breach or be within the parties' contemplation. (B)</p> Signup and view all the answers

<p>The loss did not arise naturally from the breach. (A)</p> Signup and view all the answers

<p>Losses must be within the reasonable contemplation of both parties. (C)</p> Signup and view all the answers

<p>Limb 1: Loss must arise naturally; Limb 2: Loss requires knowledge of special circumstances. (C)</p> Signup and view all the answers

<p>£31.72 (C)</p> Signup and view all the answers

<p>They must be known to both parties at the time of contract formation. (B)</p> Signup and view all the answers

<p>Disappointment and distress can result from a contract that provides enjoyment. (B)</p> Signup and view all the answers

<p>If they had knowledge of the idle condition of the mill. (B)</p> Signup and view all the answers

<p>He believed he deserved a higher compensation. (A)</p> Signup and view all the answers

<p>Losses that arise naturally from the breach are usually contemplated. (C)</p> Signup and view all the answers

<p>Contracts for holiday and entertainment (C)</p> Signup and view all the answers

<p>They failed to inform the carriers of their specific circumstances. (B)</p> Signup and view all the answers

<p>Bring an action in restitution (B)</p> Signup and view all the answers

<p>The facilities that were promised but not provided (B)</p> Signup and view all the answers

<p>It is impossible to assign a monetary value. (D)</p> Signup and view all the answers

<p>The payee never delivered the goods and refused payment (C)</p> Signup and view all the answers

<p>She will not need any other remedy (D)</p> Signup and view all the answers

<p>A grave disappointment despite some services being rendered. (D)</p> Signup and view all the answers

<p>£125 (B)</p> Signup and view all the answers

<p>Bring a damages action as well as restitution (D)</p> Signup and view all the answers

<p>No performance of the contract whatsoever (D)</p> Signup and view all the answers

<p>Partial performance of the contract (C)</p> Signup and view all the answers

<p>Seeking restitution of the payment made (B)</p> Signup and view all the answers

<p>The payer must have received at least some benefit (D)</p> Signup and view all the answers

<p>Change in the law (B)</p> Signup and view all the answers

<p>Change in management structure (A)</p> Signup and view all the answers

<p>The delivery location becomes enemy territory due to war (A)</p> Signup and view all the answers

<p>The anticipation of the event by the parties (A)</p> Signup and view all the answers

<p>Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour Ltd (A)</p> Signup and view all the answers

<p>It may frustrate the contract's performance (C)</p> Signup and view all the answers

<p>The contract is frustrated (D)</p> Signup and view all the answers

<p>An unforeseen event that changes the nature of the contract (D)</p> Signup and view all the answers

<p>The contract is terminated and no future obligations exist. (B)</p> Signup and view all the answers

<p>Parties may not adjust their obligations based on unforeseen circumstances. (D)</p> Signup and view all the answers

<p>The consequences and remedies related to frustrated contracts. (C)</p> Signup and view all the answers

<p>A party's inability to fulfill contractual obligations due to financial difficulties. (B)</p> Signup and view all the answers

<p>Funds paid cannot be recovered under any circumstances. (A)</p> Signup and view all the answers

<p>It relates to an event that could not be anticipated by the parties at the time of contract formation. (C)</p> Signup and view all the answers

<p>A natural disaster destroys the premises essential for contract performance. (C)</p> Signup and view all the answers

<p>Only if the contract has not been frustrated. (B)</p> Signup and view all the answers

<p>An event making contract performance impossible or radically different (A)</p> Signup and view all the answers

<p>The event cannot have been foreseen by the parties (D)</p> Signup and view all the answers

<p>Define consequences for unforeseen events (C)</p> Signup and view all the answers

<p>A sudden legal change makes the contract illegal (B)</p> Signup and view all the answers

<p>The express provision binds the parties to the agreed terms (B)</p> Signup and view all the answers

<p>One party triggers a delay by requesting unnecessary changes (A)</p> Signup and view all the answers

<p>It may still lead to frustration depending on the circumstances (B)</p> Signup and view all the answers

<p>Events that merely increase the burden of performance (C)</p> Signup and view all the answers

The amount of money a person would have been willing to pay for a good or service, but did not have to pay due to a breach of contract.

Damages awarded to compensate for the benefit the claimant would have received if the contract had been performed properly.

Damages awarded to cover expenses incurred in reliance on a contract that was breached.

A legal principle that limits damages to those that are a foreseeable consequence of the breach.

The principle that a party cannot recover damages for expenses incurred before entering into a contract.

The amount a claimant is entitled to recover for a breach of contract.

A situation where a claimant is only entitled to recover damages for the cost of repairing a defect, rather than the full cost of replacing the defective item.

A situation where a claimant is entitled to recover nothing for a breach of contract, because there was no loss of value or amenity.

A legal principle that allows someone to claim a reasonable payment for work done, even without a formal contract.

A situation where parties agree to enter into a formal contract in the future but begin work before the contract is finalized.

When a party requests another party to start work before a formal contract is signed, expecting a contract to be entered into later.

If a formal contract is not made after a party has been asked to begin work, the law imposes a legal obligation on the party who made the request to pay a reasonable amount for the work done.

The process of obtaining a fair and reasonable payment for work done, even without a binding contract.

A legal principle stating that damages for mental distress cannot be awarded in cases of breach of contract, unless the contract is intended to provide enjoyment or peace of mind.

This refers to the distress, disappointment, upset, and frustration caused by a breach of contract for things like holidays or entertainment.

The court's assessment of the value of the lost enjoyment in a case of breach of contract.

A court's decision that damages should be awarded for mental distress caused by a breach of contract, even though such damages were previously considered inappropriate.

A type of contract where the primary purpose is to provide enjoyment, entertainment, or peace of mind.

The principle that damages should be sufficient to compensate the injured party for their actual losses, including lost enjoyment, in cases of breach of contract.

The ability of the court to assess damages for subjective aspects like emotional distress and lost enjoyment, similar to the assessment of damages in personal injury cases.

Damages awarded to a party who has suffered a loss, which can include losses of income, property, emotional distress, and enjoyment.

A legal principle where a party who has paid money under a contract can recover it if the other party fails entirely to perform their obligations.

Occurs when the party receiving payment under a contract has not done anything required under the contract or what they have done is worthless.

A claim to get back money that was wrongfully paid due to the other party's failure to fulfill their contractual obligations.

A legal remedy that compensates the injured party for financial losses caused by the breach of contract.

If a party has paid for goods or services that are totally unusable, they can sue to recover the money they paid.

If a party has paid for services but the other party only partially completes the work, the remedy is typically damages, not restitution.

If you can buy the same goods or services for the same price or less elsewhere, you might not need restitution, as you have received value for your money.

The court may grant restitution to recover the money paid, and also damages to compensate for any additional costs incurred.

A breach of contract that gives the non-breaching party the right to end the contract.

A contractual term that, if breached, gives the other party the right to terminate the contract.

A contractual term that, if breached, does not automatically give the other party the right to end the contract.

A term that is not classified as a condition or warranty. Its seriousness is determined based on the specific breach.

A breach of an innominate term that is so serious that it essentially renders the contract useless. It gives the non-breaching party the right to treat the contract as ended.

The non-breaching party's decision to continue the contract despite the breach.

The non-breaching party's decision to treat the contract as terminated due to a breach.

The breach itself does not automatically end the contract; it's the non-breaching party who chooses whether to accept the breach and terminate the contract or continue with it.

Damages for breach of contract should be foreseeable and reasonable. They should either naturally flow from the breach or be within the contemplation of both parties when the contract was made, considering any special circumstances.

This limb of the remoteness rule covers losses that are a natural and probable consequence of the breach. This means that these losses are commonly expected to arise from the type of breach in question.

This limb of the remoteness rule covers losses that are not naturally expected but might be foreseeable due to specific circumstances known to both parties at the time of the contract.

Special circumstances are specific facts known to both parties that make a particular loss more likely to occur as a consequence of the breach.

The party who might suffer a loss due to special circumstances must inform the other party about these circumstances before the contract is finalized.

If the breaching party had knowledge of special circumstances at the time of the contract, they may be liable for losses that are not naturally expected but were foreseeable based on those circumstances.

A loss is deemed too remote if it does not fall within the reasonable contemplation of the parties according to the remoteness rule.

Hadley v Baxendale is a landmark case that established the remoteness rule in contract law. It illustrates how the rule applies to determine which losses are recoverable for a breach of contract.

A situation where the performance of a contract becomes impossible due to a change in the law.

Contracts can be frustrated if the performance becomes impossible due to the outbreak of war, especially if the other party is in enemy-occupied territory.

This doctrine refers to situations where an event occurs that dramatically alters the fundamental nature of the contract, making it impossible or radically different to perform.

The doctrine of frustration only applies if the event that made performance impossible or radically different was not foreseeable by the parties at the time the contract was made.

The court may consider a contract frustrated if the parties could have addressed the potential problem through specific contractual clauses.

Key events that can lead to frustration: unavailability of a vital thing, person, or event; government intervention; and illegality.

The focus isn't just on an event but on how that event fundamentally changes the contract, making it essentially a different agreement than what was originally intended.

Examples of events that could potentially cause frustration include strikes, although the key is always the overall impact on the core obligations of the contract.

A situation where, due to unforeseen events beyond the control of the parties, the contract becomes impossible to perform or fundamentally different from what was originally agreed upon, releasing the parties from their further obligations.

The principle that parties to a contract are obligated to perform their agreed upon duties, regardless of unforeseen circumstances.

A legal doctrine which allows parties to be released from their contractual obligations, when an unforeseen event makes performance of the contract impossible, radically different from what was agreed upon, or fundamentally deprives the contract of its commercial purpose.

A court case where a party hired a room for specific days to view the coronation procession of King Edward VII. When the King was ill and the procession cancelled, the court ruled that the contract was frustrated, releasing the hirer from their obligation.

A court case where a person booked a flat to watch the coronation of King Edward VII. Although the procession was cancelled, the court found the contract was not frustrated, as the flat could still be used for its original purpose, even if the coronation was not available.

The Law Reform (Frustrated Contracts) Act 1943 is legislation that aims to alleviate the harsh consequences of the common law approach to frustrated contracts by establishing a framework for dealing with payments and expenses in such situations.

The Law Reform (Frustrated Contracts) Act 1943's objective is to provide a more balanced and just approach to handling payments and expenses in the case of frustrated contracts, addressing some of the harshness common law rules created and aiming to achieve a fairer outcome for both parties.

The Law Reform (Frustrated Contracts) Act 1943 attempts to resolve issues arising from frustrated contracts by providing a framework for handling situations where performance becomes impossible due to unforeseen events.

A supervening event (something that happens after the contract is made) that makes the performance of the contract impossible or radically different from what was originally planned.

A clause in a contract that specifies how the parties will deal with certain events that are beyond their control, making performance impossible or very difficult.

A contract will not be frustrated if the parties could have foreseen (or should have foreseen) the frustrating event. This includes situations where the contract itself has provisions to deal with the event.

A contract cannot be frustrated if the frustrating event was caused by the actions of one of the parties involved. This includes events where the party could have avoided the frustrating event but didn't.

The parties may have expressly specified how to handle specific events in their contract. If the contract has a relevant clause, it will likely override the doctrine of frustration. However, a contract cannot exclude frustration if it becomes illegal due to events like war (e.g., Fibrosa case).

The contract is not frustrated if the event merely makes performance more difficult or expensive. It must make performance impossible or radically different from what was intended.

The doctrine of frustration will not apply if the event which made performance of the contract impossible was something that the parties should have reasonably foreseen. The courts may look at whether the event was foreseeable, even if it is not expressly mentioned in the contract.