Breach of Contract & Remedies

Question 1

Anticipatory Repudiation

Answer 1

The promisor clearly and unequivocally indicates through words or actions that it will not perform.

Question 2

Anticipatory Repudiation

The nonbreaching party can:

Answer 2

• Treat the repudiation as a breach of contract and sue immediately;
• Suspend its own performance and demand performance from the promisor;
• Cancel the contract; or
• Wait for the date of performance, and then sue for breach

Question 3

Anticipatory Repudiation

Retraction

Answer 3

The promisor can retract its repudiation unless the other party:
* Acts in reliance on the repudiation;
* Accepts the repudiation; or
* Has already filed an action for breach of contract

Question 4

Material breach

(common law)

Answer 4

• Occurs when the nonbreaching party does not receive the substantial benefit of the bargain.
• The nonbreaching party can withhold any promised performance and pursue remedies for breach.

Question 5

Minor breach

(common law)

Answer 5

• Occurs when the breaching party has substantially performed, but not fully performed.
• The nonbreaching party is entitled to pursue remedies for the minor breach, but it still must perform under the contract.

Question 6

Quasi-contract (i.e., implied in law)

Answer 6

A court may award restitution damages if:
* The plaintiff conferred a measurable benefit on the defendant;
* The plaintiff acted without gratuitous intent; and
* It would be unfair to let the defendant retain the benefit.

Question 7

Specific Performance

(elements)

Answer 7

1. There must be a valid contract.
2. The terms of the contract must be clear enough to allow a court to make an order.
3. The nonbreaching party has satisfied any conditions precedent so that performance is now due.
4. Money damages are inadequate.
5. It is feasible for the court to enforce and supervise the performance.