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Remedies 2 - Coggle Diagram
Remedies 2
Legal remedies
Repudiation: If goods do not match their description, they can be rejected and the contract can be treated as terminated
Common law:
- Where there is a breach of condition or a breach of innominate term serious enough to amount to a breach of condition
- If a party refuses to meet all or a substantial part of their contractual obligations
- if a party makes performance impossible
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Sale of goods act 1979 s38-48:
- An unpaid seller of goods has the right to a lien. This means the right to keep possession of the debtor's goods until paid.
- If the buyer becomes insolvent, the seller has the right to stop goods in transit and get them back from the carrier
- The seller also has a limited right to resale
Consumer rights act 2015:
- S20 short term right to reject
- S23 right to repair or replacement
- S24 right to a price reduction or a final right to reject
Liquidated damages
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Liquidated damages clauses:
- A genuine or reasonable pre-estimate of the loss likely to be caused by the breach
- The fact that the consequences of breach are impossible accurately to estimate is no bar to a clause being a liquidated damages clause
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Penalty clauses:
- Not enforceable
- Sum stipulated is extravagant compared to the maximum possible loss that could have flowed from the breach
- If the breach takes the form of failing to pay a sum of money, and the sum stipulated in the clause is greater than this amount
- A sum of money is payable for a wide variety of breaches, regardless of their seriousness
-The wording used by the parties is inconclusive
Quantum meriut
Innocent party is awarded a reasonable sum of money to account for the benefit they have provided to the other party
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Entire obligation requiring complete performance
Normally no entitlement to payment; where innocent party voluntarialy accepts a benefit before the contract is abandoned, other party may recover the reasonable value of it
Equitable remedies
Injunction:
- A court order which tells a party not to breach the term of a contract prohibitory
- Temporary or permanent
- Court order which tells a party to do something mandatory
Specific performance:
- An order requiring a party to complete his primary obligations under the contract
- Beswick v Beswick will now be granted where just and reasonable to do so
- Patel v Ali not were severe hardship would be caused to the defendant