Breach of contract

Breach of contract:

• Failure to fulfil term of the contract

• Strict liability

• Give C option of terminating

Termination:

• Stopping further performance

• Parties may seek to recover money paid under terminated contract

• Depends on how breach is classified:

  • Conditions: termination

  • Warranties: no termination

  • Inominate: depends on consequences of breach

Innominate term:

• Gives C option to terminate if consequences were sufficiently serioud

• Did it deprive C of the benefit intended?

Types of damages:

• Expectation: puts D in position they would’ve been in had contract been performed

• Reliance: puts C in position they were in before, ensuring they are not worse off now

• Restitution: aim to strip profits off breaching party

• Cost of cure: covers the cost of fixing breach

• Loss of amenity: compensates for loss of satisfaction

Obligations to pay:

• Action for debt

• Substantial performance enough (hoenig v isaacs)

White carter v mcgregor:

• Building company advertised on bins

• Agreed for 3yrs & renewed contract

• Boss then stated no renewal

• Bins said no

• HoL said Building must pay as D can choose to end contract or not

• A wrongdoer can’t unilaterally end the contract

Advantages to damages:

• Brings disputes to an end

• Easier to enforce

• Less onerous: infringement on personal liberty to enforce performance

Specific performance:

• Damages must be inadequate

• No specific performance of contracts of personal services

• Must not cause D undue hardship

Coop v Argyll:

• A shut stores in their supermarket

• C said they had to keep it open for contract’s duration

• Told A to keep it open

• HoL said damages, A doesn’t have to stay open:

  • Stops future disputes

  • Worries about forcing business into keeping stores open if it’s making them a loss