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Chapter

Cover Cheshire, Fifoot, and Furmston's Law of Contract

18. Performance and Breach  

M P Furmston

This chapter discusses the law on performance and breach of contact. It covers the order of performance; excuses for non-performance; whether a party who does not perform perfectly can claim payment or performance from the other party; whether an innocent party who has paid in advance can recover his payment in the event of a failure of perfect performance; whether the innocent party can terminate the contract; the effect of a repudiation or a fundamental breach; the effect of discharging the contract for a bad reason, when a good reason also exists; contractual provisions for termination; stipulations as to time; and tender of performance.

Chapter

Cover Anson's Law of Contract

12. Performance  

Jack Beatson, Andrew Burrows, and John Cartwright

This chapter discusses the rules governing contract performance. It covers the standards of contractual duty, time of performance, place of performance, order of performance, payment, vicarious performance, alternative modes of performance, right of party in breach to cure bad or incomplete performance, tender, and partial performance.

Chapter

Cover Cheshire, Fifoot, and Furmston's Law of Contract

21. Remedies for Breach of Contract  

M P Furmston

This chapter discusses remedies for breach of contract. It covers damages (remoteness of damage and measure of damages; mitigation; contributory negligence; liquidated damages and penalties; and deposits, part payments, and forfeitures), specific performance (specific performance a discretionary remedy; the principle of mutuality; and the remedy of injunction), and extinction of remedies (the statutory time limits; effect of defendant’s fraud; extension of time in case of disability; effect of acknowledgement or part payment; and effect of lapse of time on equitable claims).

Chapter

Cover Essential Cases: Contract Law

Hyde v Wrench (1840) 49 ER 132  

Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Hyde v Wrench [1840] EWHC Ch J90; (1840) 49 ER 132; (1840) 3 Beav 334. The document also includes supporting commentary from author Nicola Jackson.

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Cover Essential Cases: Contract Law 5e

Hyde v Wrench (1840) 49 ER 132  

Essential Cases: Contract Law provides a bridge between course textbooks and key case judgments. This case document summarizes the facts and decision in Hyde v Wrench [1840] EWHC Ch J90; (1840) 49 ER 132; (1840) 3 Beav 334. The document also includes supporting commentary from author Nicola Jackson.

Chapter

Cover Contract Law

10. Fundamental changes  

Frustration and common mistake

This chapter examines the doctrines of frustration and common mistake that deal with situations where fundamental changes have occurred. Frustration and common mistake apply to situations where the parties find themselves in uncharted territory. The doctrines ask courts to determine the limits of a contract, the point where the contractual framework runs out and the contract no longer holds. This chapter first considers the impact of ‘unknown unknowns’ on the contract and the distinction between frustration and common mistake before discussing frustrating events and the consequences of frustration. It also describes three types of common mistake that render the contract void: mistakes as to the existence of the subject matter, mistakes as to the possibility of performance, and certain types of mistakes as to the quality of the subject matter. Finally, it looks at the legal consequences of common mistake and remedies for common mistake.

Chapter

Cover Concentrate Questions and Answers Contract Law

12. Additional Remedies  

The Concentrate Questions and Answers series offers the best preparation for tackling exam questions. Each book includes typical questions, answer plans and suggested answers, author commentary, and other features. The standard common law remedy of damages will not always prove adequate for the victim of a breach of contract. Equity therefore developed a number of additional remedies, discretionary in nature, aimed at ensuring that a claimant was not unreasonably confined to an award of damages; in particular, specific performance and injunctions. The possibility of awarding restitutionary damages, in part to offset any unjust enrichment secured by a contract-breaker, is also considered.

Chapter

Cover Complete Contract Law

8. Breach and Termination of the Contract  

This chapter addresses the breach and termination of the contract. Since the terms represent obligations of the parties, where such an obligation is not followed, we say there has been a breach of the contract. The chapter examines the law relating to breach of contract and how breach can end a contract. When a term is breached, it does not end the contract automatically. Instead, the breach will entitle the innocent party to compensation for losses caused by the breach. In addition, the breach might allow the innocent party to choose to end the contract. Such an option is often determined by the type of term breached or the seriousness of the breach. This means that a typical dispute following an obvious breach will be about whether the innocent party can end the contract. Before one can explore when a breach can result in the contract ending, however, one needs to briefly look at how a party can breach an obligation. That is based on whether the obligation is due to be performed; the type of obligation; and the standard of performance that it requires.

Chapter

Cover Business Law

10. Ending the Contract  

This chapter discusses other ways in which a valid contract may be discharged, aside from the successful completion of established rights and duties. It also discusses possible remedies where a party breaches the contract. Under the normal rules of contract, a party is only discharged from a contract when that party has completed obligations under it. Having completed the contract each party is free of further obligations. A failure to complete the contract may lead to a breach of contract claim, although situations exist where the parties may release each other from further obligation—referred to as discharge by agreement—or the contract may have been partially or substantially performed. This chapter examines discharge through performance and agreement, how contracts may become frustrated, and the consequences and remedies following a breach of contract.

Chapter

Cover Introduction to Business Law

8. Discharge of Contract and Contractual Remedies  

The discharge of a contract means that the obligations of the contract come to an end. When discharge occurs, all duties which arose under the contract are terminated. This chapter discusses the various methods of discharging a contract and the consequences of each. It considers how a contract can be discharged through agreement between the parties; the elements necessary for a contract to be discharged by performance, including the rules relating to partial performance of a contract; and the meaning and effect of the frustration of a contract. The chapter discusses the meaning of breach of contract, both actual breach and anticipatory breach, and its consequences. The remedies for a breach of contract are explored, including the rules relating to remoteness and measure of damages and the difference between liquidated damages and penalties. Equitable remedies of specific performance and injunctions are explained.

Chapter

Cover Anson's Law of Contract

18. Specific Remedies  

Jack Beatson, Andrew Burrows, and John Cartwright

This Chapter considers specific remedies for breach of contract. Under certain circumstances, a contractual promise may be enforced directly. This may be by an action for the agreed sum, by an order for specific performance of the obligation, or by an injunction to restrain the breach of a negative stipulation in a contract or to require the defendant to take positive steps to undo a breach of contract. These remedies have different historical roots, the claim for an agreed sum being, like damages, a common law remedy whereas specific performance and injunctions are equitable remedies that were once exclusively administered by the Court of Chancery.

Chapter

Cover JC Smith's The Law of Contract

29. Remedies beyond compensatory damages  

This chapter considers gain-based and equitable remedies for breach of contract, which can be awarded in situations where restricting the claimant to damages would be inadequate. Damages may be awarded to strip a defendant of gains made from a breach of contract. Such ‘restitutionary damages’ are only awarded very rarely in ‘exceptional circumstances’ where the usual remedies for breach of contract are ‘inadequate’, and the claimant has a legitimate interest in preventing the defendant’s profit-making activity and depriving them of their profit. Where damages are inadequate to achieve justice, the court may grant equitable relief. The most important equitable orders are for specific performance and injunctions. Specific performance compels a person to perform their contract. Injunctions can either prevent a person from breaching their contract (prohibitory injunctions) or force a person to comply with their contract (mandatory injunctions).

Chapter

Cover Contract Law

15. Breach of contract  

Repudiation and the right to terminate

This chapter examines how English law defines breach of contract and what the immediate effect of breach is on the validity of the contract, along with the obligations of the parties under the contract. It first considers the core principles underlying the law’s approach to defining breach before explaining how the courts assess performance and the consequences of breach, with particular emphasis on cases involving repudiation. It then discusses three types or classes of contractual terms: conditions, warranties, and innominate terms. It also looks at how the law deals with situations of anticipatory breach and concludes with an analysis of the scope and limits of the right of a party to terminate the contract following a repudiatory breach by the other party.

Chapter

Cover Koffman, Macdonald & Atkins' Law of Contract

18. Performance and breach  

This chapter covers the two contractual situations of performance and breach. First, it recognizes that most contracts are performed and completed, with the consequence that liability ceases and the obligations under the contract are discharged by performance. Some obligations may be classed as conditions precedent, or as conditions subsequent, and the order for performance may be provided for by contingent conditions. The relevance of the entire contracts rule is noted. Second, the chapter explores the injured party’s right to terminate for breach. The right to terminate for repudiatory breach and the right to terminate for anticipatory breach of contract, are both illustrated through the relevant case law which highlight the possible options available to an injured party and the consequences which may follow.

Chapter

Cover O'Sullivan & Hilliard's The Law of Contract

15. Discharge of a contract for breach  

Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter examines the circumstances in which a contract can be terminated or discharged by one party following breach or incomplete performance by the other party, covering entire obligations. It explains that breach of contract does not automatically bring a contract to an end and that termination of a contract for breach is not the same as rescission. This chapter also discusses the two sorts of situation in which the innocent party can terminate the contract for the other party’s breach, namely breach of condition or serious breach of an innominate term, and following repudiation, and considers the innocent party’s option to elect whether to terminate the contract or keep it alive.

Chapter

Cover Contract Law

14. Specific and agreed remedies  

Courts are very willing to award orders compelling the defendant to pay the agreed price, but much less willing to compel non-monetary performance (specific performance or injunctions). Contract law also controls the remedies agreed by the parties. This chapter discusses: (1) the extent to which contract law grants specific enforcement of different types of contracts; (2) the reasons for denying a claim for specific enforcement; (3) when contract law will refuse to enforce the remedy agreed by the parties, especially agreed payments; and (4) the normative considerations in answering points (1) to (3).

Chapter

Cover Card & James' Business Law

12. Remedies for breach of contract  

This chapter examines the various remedies for breach of contract. The principal remedy is an award of damages, the main aim of which is to put the claimant in the position in which he would have been had the breach not occurred. The various types of damages are discussed, notably the distinction between expectation loss and reliance loss, and the ability to claim for financial and non-pecuniary losses. The chapter also discusses restitutionary remedies in cases where the defendant has been enriched due to his breach of contract. Finally, the chapter looks at remedies designed to ensure that persons adhere to contracts, such as specific performance and injunctions.

Chapter

Cover Anson's Law of Contract

22. Assignment  

Jack Beatson, Andrew Burrows, and John Cartwright

This Chapter considers assignment, that is to say, the transfer of B’s contractual rights against A to C by means of an agreement between B (the assignor) and C (the assignee) irrespective of A’s (the debtor’s) consent. It examines the rules governing assignment and distinguishes it from several similar concepts: the negotiability of ‘negotiable instruments’, vicarious performance, novation, and the transfer of rights and liabilities by operation of law.

Chapter

Cover Contract Law

15. Good Faith  

This chapter discusses the role of good faith in contract law, first analysing the decision in Walford v. Miles [1992] 2 AC 128, where it was held that an obligation to negotiate in good faith is not valid. It then examines the reasons that led to the decision and also explores its limits. Next, the chapter considers the arguments that have been advanced in support of the refusal of English law to recognize the validity of a doctrine of good faith and then turns to the arguments that have been advanced by those who support the recognition of a doctrine of good faith. It concludes by examining the development of a doctrine of good faith in the performance of contracts.

Chapter

Cover Contract Law

18. Privity and third parties  

Protecting the rights of non-parties

This chapter examines how English law, through a doctrine known as privity of contract, deals with the problem posed by contracts whose performance involves third parties. According to the doctrine of privity, a contract ordinarily only affects persons who are party to it. Third parties are neither bound by the contract nor entitled to claim rights under the contract. However, the courts and Parliament developed a number of exceptions to the strict rule of privity, each of which gives third parties a right to sue under the contract in a certain type of situation. For example, the Contracts (Rights of Third Parties) Act 1999 gives third party beneficiaries a right to enforce contract terms. This chapter first considers the problem of third party rights in contracting before discussing the effects of privity and the provisions of the Contracts (Rights of Third Parties) Act 1999 in more detail.