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Ends and Remedies of Contracts (Remedies (Equitable relief: specific…
Ends and Remedies
of Contracts
Remedies
Rescission
The cancellation of a contract
to restore the parties to their
original positions
Availability
Effect
Damages
Expectation damages:
forward-looking
= expected benefits - costs
Difficulty of calculation
Cost of cure or loss of value
Alternative performance
Intangible losses and emotional distress
Remoteness: fairness
Mitigation of damages: taking steps to
minimize the losses from the defendant's
branch
Reliance damages:
backward-looking
Only to the extent that
a contract is not unprofitable
Nominal damages
Liquidated damages
Punitive damages when
intolerable behaviour and
independently actionable
wrong
Account of profits: stripping the defendant
of a benefit that it received as a result of
breaking a contract
Equitable relief:
specific performance when
Personal services is not
preferred
Mutuality: for and against
same person
Judicial supervision
not required
Inadequacy of damages
Proper action &
fair treatment
Injunctions: not to do
something that is
prohibited by the contract
Unjust enrichment proved
when an enrichment to the defendant;
a deprivation to the plaintiff;
absence of juristic reason for
the enrichment
Discharge
Completely fulfills obligations
under contracts
Substantially fulfills obligations
under contracts
Time is usually not
of the essence, but
it may be in some
circumstances
Tender of payment or
performance
Credit cards
Cheques
Debit cards
Paypal
Performance
Substantial performance
Satisfies a contract in
major ways;
partial payment available
Entire contract
No partial payment
Breach of condition
Warranty
A term not substantially deprive
the innocent party of the
expected benefit of the contract
Intermediate
A term may or may not substantially
deprive the innocent party of the
expected benefit of the contract
Condition
A term substantially deprive
the innocent party of the
expected benefit of the contract
Breach
Deviation
A shipment departs from the route
agreed by the parties
Anticipatory breach
A party indicates in advance
by words or conduct that it does
not intend to fulfill an obligation
due in the future
Defective
performance
A party fails to properly perform
an obligation under a contract
Self-induced impossibility
One party induces the impossibility
to perform and obligation under
a contract
Termination
By agreement
Insert an option
to terminate
Subject to restrictions
Conditional
contracts
True condition precedent: create contracts
if and when condition is satisfied
Condition precedent: immediately
suspend primary obligations
Notice 1: acceleration clause
Notice 2: subsidiary obligations
Condition subsequent: immediately
terminate existing contracts
Accord and satisfaction
A party gives up the right
to demand contractual performance
in exchange for some new benefits
Accord: new agreement
Satisfaction: fresh consideration
Novation
One contract is
replaced with another
Same parties - different obligations
Different parties - same obligations
All affected parties must consent
Should be in written
Release
An agreement under
seal to terminate a
contract
Waiver
Contract varied
Lapse of limitation period:
suffered party to sue within
a certain period
Ended by frustration
Impossible to perform
or circumstance change
do much