Module 4: Discharge of Contract Flashcards

Question

What are damages?

Answer 1

Sum of money to compensate the innocent party for losses resulting in breach of contract

Answer 2

Compensation rather than punishment

Answer 3

To put the innocent party in the position he would have been in had the contract been performed

Answer 4

Actor broke contract last minute Had incurred preparator costs TV company able to recover these expenses Wouldn't have been able to recover lost profits as impossible to determine film would have made a profit

Answer 5

Causation Mitigation Remoteness of Loss

Answer 6

Requires that the loss suffered by the innocent party must be shown to have been caused by the breach

Answer 7

Solicitors acting in breach failed to advise their client of a disadvantageous term in a lease Would have entered into contract even if advised Breach did not cause the loss and no compensation payable

Answer 8

Party claiming must take reasonable steps to minimise his loss Not all possible steps, only reasonable Not able to recover losses which might have been reasonably avoided

Answer 9

Mitigation may be reasonable to accept substitute performance- cost effective Party claiming must take reasonable steps to minimise loss Contract for goods in installments Failed to pay 1st one Refused to make further deliveries Refused to accept terms No more goods Price rose and Payzu sued for breach Payzu should have mitigated its loss by accepting offer of goods for cash in advance Since it didn't, limited damages to assumed loss had paid in advance

Answer 10

Does not hold us responsible for all the consequences of our actions Loss may not be recoverable where it is too remote

Answer 11

Arose naturally from the breach Reasonably foreseeable as liable to result from breach Determined on basis of what was known by the party at the time the contract was made

Answer 12

``` Flour mill had broken crankshaft Delayed replacement Mill owner not entitled to damages Not reasonably foreseeable to the carrier that the mill would be out of actions Expected mill would have spare Too remote ```

Answer 13

Knowing what sort of loss the normal course of things involve For liability to arise they should be told of any special circumstances that might give rise to abnormal/unexpected losses

Answer 14

5 months late in delivering boiler Lost lucrative cleaning contract Sued for ordinary profits Only liable ton compensate for ordinary loss not exceptional loss Would only be recoverable if has knowledge of the contract at the time

Answer 15

BB while constructing power failed at critical point Sued SP for breach Court ruled loss too remote Appealed to Inner House of Court of Session and claim succeeded on basis that SP had sufficient technical knowledge to foresee damage of power failing SP appealed and House of Lords agreed with first ruling

Answer 16

``` Rescission Specific implement/specific performance Interdict/injunction Retention Lien ```

Answer 17

Innocent party declare an end to the contract and withdraws | Claim damages in respect to breach

Answer 18

Where wants to force the contract breaker to perform Court order requiring positive action Circumstances where wouldn't order it e.g. money, personal relationship, no jurisdiction

Answer 19

Requires contract breaker not to do something

Answer 20

Party not in breach withholds performance of his own obligations

Answer 21

Party not in breach retaining or refusing to deliver the other party's goods in his possession until he performs his obligations

Module 4: Discharge of Contract Flashcards

(45 cards)