Contract lawLesson 1 of 1 in the course Breach and remedies

Contract Breach: Classification, Termination, Remedies, and Cure

5 flashcards · 5 quiz questions · 5 match pairs · 5 fill-in sentences · English

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Summary

This lesson introduces breach of contract and the main ways it can occur. Recognizing the form of a breach is the first step toward understanding the parties’ rights.

A breach of contract occurs when a party fails to honor an obligation in a binding agreement. Failure can be partial or complete, and may involve not doing something required, doing something prohibited, or interfering with the other party’s performance. A breach may also arise when a party clearly indicates that it will not perform, or appears unable to perform, an obligation when due.

All flashcards

What is an actual breach?
Failure to perform a contractual obligation when it is due.
What is an anticipatory breach?
A clear indication before performance is due that a party will not perform as required.
What is an innominate term?
A contractual term whose breach consequences depend on its effects in the circumstances.
What is compensatory damages’ purpose?
To place the injured party, so far as money can, in the position expected if the contract had been performed.
What is economic waste in assessing repair costs?
Unreasonable destruction of something valuable or repair costs disproportionate to the loss.

Quiz questions

  1. What must an innocent party generally do to end a contract for repudiatory breach?Answer: Communicate that it accepts the breach as ending the contract.
  2. What makes a breach of an innominate term potentially repudiatory?Answer: Its effects substantially deprive the innocent party of the expected benefit of future performance.
  3. What is the primary purpose of punitive damages in contract cases?Answer: To punish exceptional misconduct rather than compensate for ordinary contractual loss.
  4. Is a contractual deadline automatically a condition whose breach permits termination?Answer: No; the contract and commercial context determine whether timely performance is essential.
  5. When might damages based on the cost of repair be limited?Answer: When repair would cause economic waste or be disproportionate to the actual loss.

Based on the Wikipedia article Breach of contract, licensed CC BY-SA 4.0. Adapted into a summary, flashcards and quizzes.

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