Topic 2 - Contract Termination

Question 1

Exclusion clause

Answer 1

• restrict or exclude the liability of one party for breach of contract or negligence
• must be given at the time contract is made
• if not signed, the clause must be sufficiently highlighted at time contract was formed

Question 2

UTCA 1977

Answer 2

• regulate exclusion clauses in business to business contracts

Reasonables test
* any attempy to exlude liability for death or personal injury caused by negligence will be void (never reasonable)
* any attempy to exclude any provision of the Sale of Goods Act 1979 will be void

Question 3

Consumer Rights Act 2015

Answer 3

• introduce a requirement for ‘fairness’ in consumer contracts and notices
• excluding liability for death or personal injury and restriction of the consumer’s legal rights are automatically unenforceable

Question 4

Expectation interest

Answer 4

• be put in the postion you would’ve been if the breach of contract didnt happen

Question 5

Reliance Interest

Answer 5

• suing for costs incurred during the contract (wasted expenses)
• more speculative cases

Question 6

Specific Performance

Answer 6

• party must complete their contractual obligations

Will not be awawarded when:
* Courts cannot supervise enforcement
* Contract is for personal service
* Damages are adequate

Question 7

Injuctions

Answer 7

• Mandatory - defendant must undo something that was in breach of contract
• Prohibitory - defendant must observe a negative promise in a contract (promise not to do something)
• Asset freezing - defendant prohibited from dealing an asset

Court directs party to stop breaching their contractual obligations

Question 8

Anticipatory breach

Answer 8

• may be implied from conduct and not explicit: where one party gives notice of their intention not to comply with a contractual term

Can either:
* treat the contract as discharged immediately and sue for damanges
* allow the contract to continue until there is an actual breach and take action

Question 9

Repudiatory breach

Answer 9

• a fundamentally important term has been breached
• injured party has been deprived of substantially the whole benefit of the contract

Question 10

In the event of a dispute about whether the contract is supported by consideration, what wil the courts determine?

Answer 10

Whether the consideration is sufficient,it does not need to be adequate

Question 11

Measure of damages

breach

Answer 11

aim is to put you in a position if the breach had never happened

• only financial losses may be recovered
• non-finanical losses may be claimed where is contract is one for the provision of enjoyment e.g. holiday
• injured party must take all reasonable steps to mitigate losses

Question 12

Breach of contract - what is the innocent parties legal position in regards to their contractual obligations

Answer 12

They are not discharged from their contractual obligations that are due or outstanding at the time of termination