Deck 14: Discharge by Performance or Breach

Question 1

The general rule is that a contract is discharged by performance only where the parties have performed their obligations exactly as they are set out in the contract.

Answer 1

True

Question 2

If the victim of a repudiatroy breach does not repudiate a contract then they will be deemed to have done what?

A) Raised an estoppel
B) Consolidated the contract
C) Re-affirmed the contract
D) Affirmed the contract

Answer 2

D

Question 3

Which of the following cases involve an acceptance of partial contractual performance?

A) Sumpter v Hedges
B) Christy v Row
C) Bolton v Mahadeva
D) Hoenig v Isaacs

Answer 3

A,B

Question 4

In which cases have the courts overtly sought to accommodate the particular needs of particular commercial parties when seeking to classify contractual terms?

A) Bunge v Tradax
B) The Mihalos Angelos
C) The Hansa Nord
D) Lombard North Central v Butterworth

Question 5

Which of the following two are features of a legitimate acceptance of a repudiatory breach as set out by Lord Steyn in Vitol v Norelf?

A) The acceptance of a repudiatory breach must be effectively communicated like any other contractual acceptance
B) An act of acceptance of a repudiation requires no particular form
C) The aggrieved party must notify the other party to the contract before they may engage in a similar contract elsewhere to allow the party in breach to correct their performance
D) The aggrieved party need not personally, or by an agent, notify the repudiating party of his election to treat the contract as at an end

Question 6

Given the more flexible attitude that has emerged from the courts in respect of certain aspects of contract law is it right that a contract can still only be discharged by performing obligations to the letter of the agreement?

Question 7

Should the commission of a repudiatory breach lead to the automatic termination of a contract irrespective of parties wishes?

Question 8

Distinguish between rescission and repudiation.

Question 9

To what extent will the categorisation given to a contractual term by the parties to the contract bind a court?

Question 10

Intermediate terms could be regarded as bringing about uncertainty. In which contracts have the courts sought to avoid this uncertainty and how has this been achieved?

Question 11

Why does a long term contract pose difficulties when one party has argued that there has been a serious or repudiatory breach?

Question 12

What is the effect of an anticipatory breach?

Question 13

Why did the House of Lords disagree with the approach of the Court of Appeal in Vitol v Norelf?

Question 14

When one party indicates to another that they do not intend to perform their outstanding obligations under a contract this is referred to as what?

A) Advanced repudiation
B) Anticipatory breach
C) Pre-emptive breach
D) Repudiatory breach

Question 15

The term at issue in the Hong Kong Fir case relates to what?

A) The ability of the ship to transport food cargoes
B) The ability of the ship to transport liquid cargoes
C) The seaworthiness of the ship
D) The number of crew that are to be maintained on the ship

Question 16

In Re Moore & Co and Landauer & Co a contract was held not to be discharged because the canned food was not packaged as agreed.

Question 17

In Arcos Ltd v EA Ronaasen & Son a contract was held not discharged because the timber supplied was 1/8 of an inch thicker than agreed, despite being usable for its intended purpose.

Question 18

Generally, a party who has failed to fully perform all obligations may not claim for having fulfilled any obligations.

Question 19

A severable contract is useful because it permits a party who has failed to complete their obligations a claim for what has been done.

Question 20

A repudiatory breach of a contract will usually bring a contract to an end whether or not that is the intention of the parties.

Question 21

Terms implied by the Sale of Goods Act are categorised as conditions and warranties.

Question 22

In Schuler v Wickman the House of Lords saw fit to disregard the labelling of a contractual terms as a 'condition' as the contract could not be interpreted in such a way as to accord with this.

Question 23

Today, all terms must be regarded as innominate.

Question 24

There are classes of contractual terms which will always be regarded as innominate terms.

Question 25

Rice v Eastbourne Borough Council shows the difficulties faced when in seeking to prove that several breaches over a long period amount to a repudiatroy breach of contract?

Question 26

An repudiatory breach need not be accepted by communicating directly with the party that has breached the contract?

Question 27

Cutter v Powell provides authority for what rule?

A) A party can claim for the proportion of a service they have rendered under a contract
B) A party cannot claim for the proportion of a service that they have rendered under a contract
C) A party can be discharged from a contract when they have provided the majority of a service
D) A party cannot be discharged from a contract when they have provided the majority of a service

Question 28

How do the Principles of European Contract Law deal with issues of non-performance?

Question 29

A contract is breached when:

A) One of the parties does not perform
B) One of the parties does not perform without a lawful excuse
C) Both parties decide to abandon the contract
D) The contract has been frustrated

Question 30

What is the meaning of the doctrine of substantial performance?

A) That almost complete performance will necessitate payment minus damages
B) That unless 100% performance is achieved, no payment is needed
C) That unless 70% performance is achieved, no payment is needed
D) That once performance has begun, payment needs to be made minus damages

Question 31

George hired Amanda to fit a central heating system to his property. The system installed produced little heat and gave out fumes. Would Amanda:

A) Be able to claim payment on the basis of having substantially performed?
B) Be able to claim payment as she has installed the system?
C) Not be able to claim payment as faults meant the contract was not substantially performed?
D) Not be able to claim payment because George is unhappy?

Question 32

Which of the following statements on the difference between termination and rescission for breach of contract is false?

A) Termination renders the contract void ab initio
B) Rescission renders the contract void ab initio
C) Termination has differences from rescission in the assessment of damages
D) Termination and rescission bring a contract to an end

Question 33

Which case established the category of intermediate or innominate terms?

A) The Siboen and the Sibotre
B) Williams v Roffey
C) Bethini v Gye
D) Hong Kong Fir Shipping Co v Kawasaki Kisen Kaisha

Question 34

What is the consequence of a breach of a contractual warranty?

A) It enables the injured party to sue for damages
B) It enables the injured party to sue for damages or terminate the contract
C) It enables the injured party to sue for damages and terminate the contract
D) It enables the injured party to terminate the contract

Question 35

Agnes has a contract to produce business cards for Yosef, but before production starts Yosef notifies her that he no longer requires the cards. Which of the following actions she is not entitled to follow?

A) Treat the contract as repudiated
B) Treat the contract as repudiated and sue for damages
C) Produce the cards and send Yosef the bill
D) Charge Yosef the full amount immediately

Question 36

Which of the following statements is correct?

A) A breach of warranty is a more serious breach than a breach of condition
B) A breach of condition is a more serious breach than a breach of warranty
C) Both breaches are equally serious
D) Neither breaches are serious, it is only a breach of an intermediate term that constitutes a serious breach

Question 37

Where one party prevents the other from completing the obligations under an entire contract, the party who has partly performed will be able to recover on what basis for the work already done?

A) Res extincta
B) Quantus quorum
C) Quantum meruit
D) the entire obligations rule