ACCA F4 - Corp and Business Law (ENG)

102 6: Breach of contract and remedies Part B The law of obligations

Quick Quiz

1 Fill in the blanks in the statements below, using the words in the box.

(1) .................... are a (2) .................... remedy designed to restore the injured party to the position

they would have been in had the contract been (3) ....................

A loss outside the natural course of events will only be compensated if the (4) ....................

circumstances are within the (5) ....................'s knowledge at the time of making the contract.

In assessing the amount of damage it is assumed that the (6) .................... will (7) ....................

their loss.

A contractual term designed as a (8) .................... is (9) .....................

 mitigate  performed  claimant

 penalty clause  exceptional  damages

 common law  void  defendant

2 Fill in the blanks in the statements below.

When anticipatory breach occurs, the injured party has two options. These are

(1) ....................

(2) ....................

3 The amount awarded as damages is what is needed to put the claimant in the position they would have

achieved if the contract had been performed. What interest is being protected here?

expectation

reliance

4 A court will never enforce a liquidated damages clause, as any attempt to discourage breach is void.

True

False^

5 Are each of the following remedies based on (i) equity or (ii) common law?

(a) Quantum meruit

(b) Injunction

(c) Action for the price

(d) Rescission

(e) Specific performance