Task 5 159(iv) The managing director of TeaSell Ltd having a heart attack, and spending all of his
money on private health care. The heart attack was caused by the stress of TeaGrow
Ltd breaching their contract with TeaSell Ltd.3 With reference to decided cases, explain the circumstances in which a contract may become
frustrated. Explain also the legal consequences of a contract being frustrated.
Task 5
A friend of yours from abroad is considering setting up business in England. Your friend would
like to know the ways in which contractual liability can be discharged and the remedies
available for breach of a contract. Write a report for your friend, briefly explaining the following
matters:
(a) How contractual obligations can be discharged by performance.
(b) How a contract can be discharged by agreement between the contracting parties.
(c) The ways in which a contract can become frustrated.
(d) The legal position when a contract is frustrated.
(e) The meaning of an anticipatory breach of contract, and the remedies available to a party
faced with an anticipatory breach.
(f ) How a court decides whether or not a loss caused by a breach of contract is too remote for
damages to be claimed in respect of the loss.
(g) How a court quantifies the amount of damages payable for breach of contract.
(h) What is meant by mitigation of a loss.
(i) Whether the courts will apply a clause in a contract which sets out the amount of damages
payable in the event of a breach of contract.
( j) What is meant by specific performance of a contract.
(k) How an injunction can be a remedy for breach of contract.
(l) What is meant by a quantum meruitpayment, and the circumstances in which a contracting
party will be entitled to a quantum meruitpayment.
(m) The time limits within which a claim for breach of contract must be brought.
Visit http://www.mylawchamber.co.uk /macintyreessentialsfor:Access to the accompanying Pearson eText– an eBook
version linked to all of the resources below which you can
personalise with your own notes.Multiple choice questions, flashcards and practice exam questions, to test
yourself on this chapter.Use Case Navigatorto read in full some of the key cases referenced in
each chapter.premium