breach of contract Flashcards
(10 cards)
what do remedies of a breach depend on
- The nature of the breach
- What the innocent intends to achieve
how may a contract be breached
- Partial peformance
E.g if bath is completed but shower is not completed- Delayed performance
E.g month passes and bathroom is not complete - Inadequate performance
E.g cold water only comes out of the shower not hot water - Anticipatory breach
E.g not starting job for a month later than expected, indicated an intention to not fulfil the contract
- Delayed performance
what are the different options for remedy when contract is breached?
- Retention
Withhold own performance, to try to compel CB to perform
Mutuality (materality) =- Specific implement
To do something specific to fix contract - Action of payment
Pay back possible expenses when contract has been broken
To be free of their own future obligation, bring the contract to an end - Resile
Bringing contract to an end - Damages
Compensation for non performance
- Specific implement
How to asses whether retention is available as a self help remedy
- Obligation is breached
Who owed who
case for retention
bank of east Asia v Scottish enterprise 1997
what happened in bank of east Asia v Scottish enterprise 1997
the court dealt with whether Scottish Enterprise could withhold payments (use the right of retention) from the Bank of East Asia, which had been assigned the right to receive money under a contract. The court decided that Scottish Enterprise could only use retention for breaches that happened before the Bank was officially told about the assignment.
case; two separate contract breaches
Inveresk plc v Tullis Russell Papermakers Ltd
2010
what happened inInveresk plc v Tullis Russell Papermakers Ltd 2010
was about a dispute over a supply contract. Tullis Russell claimed that Inveresk didn’t meet the quality standards set in their agreement, so they ended the contract. The court ruled that Tullis Russell was right to terminate the contract because Inveresk didn’t fulfill its obligations
resile contract meaning
To lawfully withdraw from a contract without it being due to a breach or refusal by the other party.
repudiate contract meaning
To clearly state that you will not carry out the contract, even if the other party hasn’t yet broken it. This doesn’t end the contract but gives the other party the option to walk away.