KTR 211: Introduction to Contract Law - Remedies for Breach

Flashcards on Remedies for Breach of Contract based on lecture notes.

Full Performance

The natural way for a contract to terminate, achieved when both sides fulfill their obligations.

Cancellation Clause (Lex Commissoria)

A provision in a contract that regulates the consequences of a breach of the agreement, specifically regarding cancellation.

Penalty Clause

A contractual provision designed to avoid practical difficulties when proving damages, often specifying a fixed sum payable in case of breach.

Acceleration Clause

A clause that makes the outstanding debt immediately due upon a breach of contract.

Restitution Clause

A provision regulating what has to be restored upon cancellation of the contract.

Exceptio non adimpleti contractus

A remedy that allows an innocent party to withhold their performance until the other party has fully performed their reciprocal obligation.

Specific Performance

A remedy aimed at keeping the contract alive, compelling the breaching party to fulfill their contractual obligations.

Interdict

A court order for specific performance, compelling a party to do or refrain from doing something.

Cancellation

A remedy that terminates the contract due to a material breach by one of the parties.

Contractual Damages

Compensation for financial losses incurred as a direct result of the breach of contract.

Delictual Damages

Compensation for non-patrimonial losses (e.g., emotional distress, physical injury) resulting from the same set of facts that constituted the breach, claimed independently of the contract.

Patrimonial Loss

Actual financial losses incurred as a direct result of a breach.

Non-Patrimonial Loss

Losses such as pain and suffering, emotional distress, or physical injury.

Reciprocity Obligations

the two performances must be reciprocal to each other.

Sequence of performance

the other party must be obliged to perform first, or at least simultaneously, with the party raising the exceptio.

Incomplete performance

the exceptio may also be used where a party has performed incompletely.

Material Breach

A breach of contract that is sufficiently serious to justify cancellation of the contract by the innocent party.

Restitutio in integrum

Legal principle requiring parties to restore whatever performances have already been received, to place both parties in their position previous to the contract.

Mitigation Rule

The principle that an innocent party cannot claim damages that could have been prevented by taking reasonable steps to mitigate the loss.