ACA Law Chapter Two Termination of Contract

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What is the normal discharge method of a contract
Performance
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What are severable contracts
Those which consist of an number of obligations and can be severed or discharged through performance of only part of those obligations
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If one party prevents performance what type of claim can the other party bring for the amount of work already completed
Quantum Meruit
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What is it called when it is impossible to perform the contract through no fault of either party
Discharge by frustration
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What might lead to a contract being frustrated
Destruction of the subject matter
Personal incapacity to perform a contract of personal service
Government intervention
Non-occurrence of an event which is the sole purpose of the contract
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What are the consequences of the frustration under The Law Reform (Frustrated Contracts) Act 1943
Any money paid before the frustrating event to be repaid
Any sums due cease to be payable
Expenses incurred in the performance of the contract may be recoverable
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What are the lawful excuses for not performing contractual obligations
Performance has been tendered but rejected
The other party has made it impossible to perform
The parties have by agreement permitted non-performance
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What is the type of breach allows the injured party to treat the contract as at an end and to seek damages
Repudiatory breach
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What are the choices for the injured party in an anticipatory breach
Treat the contract as discharged immediately and sue for damages
Allow the contract to continue until the actual breach and take action then
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In an anticipatory breach when does the duty to mitigate losses arise
When tey accept the breach, it will need to be shown that the losses have been caused by the actual breach
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In a claim for damages what is the first issue
Remoteness of damage
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When can damages be awarded for losses
Those arising naturally
Those reasonably in the contemplation of both parties when making the contract as the probable result of the breach
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If losses are exceptional, abnormal or not reasonably foreseeable can the defendant by held liable
Only if they knew at the time of the contract the special circumstances from which the abnormal consequence of the breach could arise
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What is expectation interest
What is needed to put the claimant in the position they would have been if the contract had been performed
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What is reliance interest
What is needed to put the claimant in the position they would have been in if they had not relied on the contract
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Can damages only be claimed for financial loss
Mental distress can be claimed where that is the main result of the breach
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Does a claimant have to take all steps to mitigate their losses
No, they are not required to take nay discreditable or risky measures
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What are liquidated damages
If the contract includes a fixed sum or formula for damages payable for a breach
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Are penalty clauses enforceable
No since they are penal in nature
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When might specific performance by used
Where damages are not an adequate remedy but not if it would require supervision of the performance or if it is a contract of personal service
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What are the three types of injunction
Mandatory - defendant must take positive steps to undo something
Prohibitory - defendant must observe a negative promise
Asset-freezing - defendant can't deal with certain assets
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When is an exclusion clause binding in a signed document
If no misleading explanation this is binding regardless of if the other person read it or not
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When is an exclusion clause binding in an unsigned document
If the person was made sufficiently aware and onerous terms highlighted
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If there is any ambiguity in an exclusion clause how will the courts interpret it
Against the person who relies on the exclusion
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Who can use the Unfair Contract Act 1977 (UCTA)
Contracts between businesses
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When is a clause automatically unenforceable under The Consumer Rights Act 2015
Limiting liability for death or personal injury resulting from negligence. Any restriction of the consumers legal rights under the act
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If an activity if merely incidental to a business which act applies
The Consumer Rights Act 2015 as they are considered a consumer
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Other cards in this set

Card 2

Front

What are severable contracts

Back

Those which consist of an number of obligations and can be severed or discharged through performance of only part of those obligations

Card 3

Front

If one party prevents performance what type of claim can the other party bring for the amount of work already completed

Back

Preview of the front of card 3

Card 4

Front

What is it called when it is impossible to perform the contract through no fault of either party

Back

Preview of the front of card 4

Card 5

Front

What might lead to a contract being frustrated

Back

Preview of the front of card 5
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