ADMN 3250H Chapter Notes - Chapter 13, 21: Equitable Remedy, Punitive Damages, Quantum Meruit
30 Jun 2018
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Department
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Chapter 13 & 21
What are the ways in which a contract may end?
By agreement
oBefore both parties have fully performed
As a right
oOption to terminate as a term in agreement
Doctrine of frustration
oPerformance rendered impossible by external event (ex. War
declared)
Operation of law
oBankruptcy/limitations act
Condition precedent
oExpress or implied term that must be fulfilled before contract may be
performed
Condition subsequent
oAct of god
oImplied term
oExpress term
What are the various types of breach of contract?
Breach of contract – the failure to perform a contract in accordance with its
terms
Express repudiation, implied repudiation, and fundamental breach
oRepudiation – a refusal to perform a contract
Express repudiation
When a party to a contract expressly repudiates a promise to perform, either
by conduct or by a form of communication
Anticipatory breach – an advance determination that a party will not perform
is or her part of a contract when the time for performance arrives
Doctrine of substantial performance – where a party that has committed a
breach has largely performed, the injured party cannot unfairly avoid their
own performance, but is entitled to a deduction in price, or damages
Rights of injured party:
oReleased from future performance
oDamages for loss suffered
oOption to wait until date fixed for performance then take action for
non-performance
Exceptions:
oWhere party has substantially performed contract – only entitled to
damages for loss
Implied repudiation
find more resources at oneclass.com
find more resources at oneclass.com
Most difficult form of anticipatory breach to determine
Occurs when the repudiation must be ascertained from the actions of a party,
or implied from statements made before the time fixed for performance
Ex. If a party acts in a manner indicating that he or she might not perform on
the specified date, the other party to the agreement is faced with a dilemma
Rights of injured party:
oReleased from future performance
oDamages for loss suffered
oOption to wait until date fixed for performance then take action for
non-performance
Exceptions:
oWhere party has substantially performed contract – only entitled to
damages for loss
Fundamental Breach
A breach of the contract that goes to the root of the agreement
Permits the party injured by the breach to be exonerated from performance,
even though the contract may specifically require performance by the party
in the face of a breach
Rights of injured party – Entitled to treat contract as at an end – exemption
clauses will not protect party in breach
Exceptions – injured party must not continue to accept benefits under
contract after fundamental breach discovered
What is the purpose of contractual remedies for breach of contract?
A breach of contract gives the party injured by the breach the right to sue for
compensation for the loss suffered
Loss or injury as a result of the breach must be proven
If this is done, the courts will attempt to place the injured party in the same
position he or she would have been in had the contract been properly
performed
Usual remedy – monetary damages
Restitutio in integrum – to restore or return a party to an original position
oBasic principle of damages
What types of remedies are available for breach of contract?
Damages
oTo compensate for loss by money payment
oTo place party in same position as if agreement fulfilled
oGeneral damages – restitution for losses that can be naturally
expected to flow from a breach of contract
oSpecific damages – damages that do not otherwise flow normally or
naturally from a specific breach of contract
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
By agreement: before both parties have fully performed. As a right: option to terminate as a term in agreement. Doctrine of frustration: performance rendered impossible by external event (ex. Condition precedent: express or implied term that must be fulfilled before contract may be performed. Condition subsequent: act of god, implied term, express term. Breach of contract the failure to perform a contract in accordance with its terms. Express repudiation, implied repudiation, and fundamental breach: repudiation a refusal to perform a contract. When a party to a contract expressly repudiates a promise to perform, either by conduct or by a form of communication. Anticipatory breach an advance determination that a party will not perform is or her part of a contract when the time for performance arrives. Doctrine of substantial performance where a party that has committed a breach has largely performed, the injured party cannot unfairly avoid their own performance, but is entitled to a deduction in price, or damages.
