Contract Law: Breach and Remedy

What term gives you the right to terminate if broken? (1)

What term if broken only grants damages? (2)

What type of term means the remedy is dependent on the type of breach? (3)

Where might 1 be classified

What type of breach is seen as going to the 'root of the contract'

When are terms seen as 1?

What other type of breach exists

Does failure to perform automatically terminate?

Whose choice is this?

Nature of accepting breach

When does right to accept breach as repudiatory get lost?

What are the different types of damages

What is general way of compensating loss, by compensating loss of benefit of promised performance

How is this quantified?

What is available when loss of profits is too speculative

Can you double claim?

Statute for market price rule regarding non-delivery of goods

Statute for market price rule regarding non-acceptance of goods

- Singer contracted by D to perform for three months. Fell ill, couldn’t perform for first three days - D refused - Failure to turn up went to the root of the contract and thus singer in breach

- Singer contracted to perform for agreed duration, including 6 day rehearsal period, Singer turned up two days before performance period - Not a condition as did not go tpo the very root of the contract by not appearing for rehearsals

- Ship owners let the vessel, contract stated ‘seaworthy vessel’ to be provided, also said it was in good condition but needed constant maintenance - Chief engineer incompetent - Seaworthiness not seen as condition, but warranty

Developer breached a covenant by building more houses than permitted, but the councils suffered no financial loss. Issue was whether they could claim profit-based damages. Court held damages in contract are compensatory only; only nominal damages were awarded.

Employee dismissed in a humiliating way sought damages for injured feelings. Issue was whether non-pecuniary loss is recoverable for wrongful dismissal. Court held such damages are not recoverable; only financial losses can be claimed.

Charterer repudiated but war later broke out, which would have ended the contract anyway. Issue was whether later events can reduce damages. Court held they can; damages reflect actual loss, not hypothetical loss at breach date

Swimming pool built shallower than specified but still usable and with no loss in value. Issue was the proper measure of damages when cost of cure is disproportionate. Court awarded “loss of amenity,” not cost of reconstruction, nominal award.

Surveyor failed to warn buyer about aircraft noise; no financial loss but significant loss of amenity. Issue was whether non-pecuniary damages are recoverable in contract. Court held they are recoverable where a major contractual purpose relates to comfort or amenity.

Actor repudiated contract and TV company claimed wasted expenditure, including pre-contract costs. Issue was whether pre-contract reliance expenses are recoverable. Court held yes, if they were within the parties’ contemplation.

Shipowner incurred preparatory expenses, but after repudiation re-chartered at a higher profit. Issue was whether wasted expenditure is recoverable despite no net loss. Court held no: reliance damages cannot exceed the claimant’s actual loss.