Question 1

Which of the following statements is true in relation to 'agreed' damages?

Accepted Answer

All of the options are true in relation to 'agreed' damages. Agreed damages refer to a specific sum of money, they are known as liquidated damages, and the courts will only enforce an agreed damages clause if it is a genuine pre-estimation of the actual loss suffered by the innocent party to a contract.

Question 2

I am a remedy which requires someone to stop doing something.What is my name?

Accepted Answer

An injunction is a court order that requires someone to stop doing a certain action or behavior. It is often used in cases of intellectual property infringement, breach of contract, or other situations where one party is causing harm or damage to another party. An injunction can be temporary or permanent and can be enforced through penalties or other legal means if necessary.

Question 3

Which of the following statements regarding the remedy of specific performance is not true?

Accepted Answer

Specific performance is not available for contracts involving personal services, such as employment contracts, as it is not feasible to force a person to provide specific services.

Question 4

Exemplary damages are awarded to punish a party whose breach of a contract caused extreme inconvenience,disappointment or distress.Which of the following statements is true in regard to exemplary damages?

Accepted Answer

Exemplary damages, also known as punitive damages, are indeed rarely awarded in Australia and may be awarded in exceptional circumstances to punish the defendant rather than to compensate the plaintiff. They are not awarded as an alternative to a prison sentence, as they are a form of civil, not criminal, remedy.

Question 5

Joe went on a cruise on an Alaskan Cruise ship.The ship sank off the Alaskan coast and Joe was in a life boat for several hours before being rescued.If Joe sues for breach of contract he has the right to claim damages for:

Accepted Answer

Joe can claim damages for his distress and disappointment over the ruined holiday as it directly relates to the failure of the cruise ship company to provide a safe and enjoyable vacation. However, he cannot claim damages for the stress caused to his elderly mother or the loss of his job as these are indirect consequences of the accident and not directly caused by the breach of contract.

Question 6

What is the purpose of a Mareva injunction?

Accepted Answer

A Mareva injunction is a court order that freezes assets belonging to the defendant to prevent them from being removed from the jurisdiction of the court until a contractual dispute has been settled. This prevents the defendant from disposing of assets in an effort to avoid paying any potential damages awarded by the court.

Question 7

Which of the following are equitable remedies?

Accepted Answer

Equitable remedies are remedies that involve non-monetary relief, such as specific performance (requiring a party to perform a contract) and injunctions (preventing a party from doing something). Choice B includes only monetary remedies, while choice C includes both monetary and equitable remedies, and choice D includes only one equitable remedy and one monetary remedy.

Question 8

John,who has council approval to carry out renovations on his house,can only work from 10 pm to 2 am.His neighbours are asking for a court order to stop John carrying out the renovation works at that time.What order are they seeking?

Accepted Answer

The neighbors are seeking an injunction, which is a court order that requires John to stop carrying out the renovations at the prohibited time. Injunctions are a common remedy used in situations where a party is causing harm or inconvenience to another party. Specific performance is an order requiring that a party fulfill their contractual obligations. An order for rectification requires that a mistake be corrected, and quantum meruit is a claim for reasonable compensation for services rendered. None of these remedies are appropriate in this situation.

Question 9

What is my name? I am a precedent for the rules that a party in breach of a contract will be liable for any loss that 'flowed' directly from the breach; the loss cannot be too remote and the loss must be reasonably foreseeable or specifically communicated.

Accepted Answer

The name is "The Victoria Laundry Case". It established the principle of foreseeability and proximity in determining the extent of damages in a breach of contract case.

Question 10

In contract law,mitigation means that parties who have suffered a loss because of a breach of contract must:

Accepted Answer

Mitigation in contract law requires parties to take all reasonable steps to reduce the extent of their loss. This means that the party who suffered the loss has a duty to act in a reasonable manner to minimize the damages caused by the breach of contract. This can include taking steps to mitigate the loss, such as seeking out alternative sources of supply or finding a replacement for a breached contract, and taking measures to reduce the cost of the loss. The other options, B, C, and D, are not relevant to the concept of mitigation in contract law.

Question 11

Which of the following is/are tests that a court will apply when it has to decide whether damages will be awarded?

Accepted Answer

All three tests mentioned - remoteness, breach of contract, and causation - are relevant for a court to decide whether damages will be awarded.

Question 12

I am a Mareva injunction.Which of the following statements about me is not true?

Accepted Answer

Statement C is not true. Mareva injunctions (also known as freezing orders) are not limited to travel or shipping cases. They can be used in any case where there is a risk that the defendant may remove assets from the jurisdiction of the court in order to avoid paying a judgment.

Question 13

Which of the following is not a test that a court will apply when it has to decide whether damages will be awarded?

Accepted Answer

The concept of contributory negligence is primarily relevant in tort law, not in the determination of whether damages will be awarded for a breach of contract. The other options (A, C, D) are relevant considerations in assessing damages in contract law.

Question 14

Which of the following statements is/are correct in relation to the award of damages for a breach of contract?

Accepted Answer

All of the above statements are correct in relation to the award of damages for a breach of contract. Damages are awarded to compensate the plaintiff for the loss suffered as a result of the breach, and the plaintiff has a duty to mitigate their loss by taking reasonable steps to reduce it. The purpose of damages is not to punish the party that breached the contract, but rather to restore the plaintiff to the position they would have been in if the contract had been performed as agreed.

Question 15

Which of the following is the main common law remedy for a breach of contract?

Accepted Answer

Damages are the main common law remedy for a breach of contract. This involves the payment of money to the innocent party, usually to compensate for loss resulting from the breach of contract. Restitution, specific performance, and injunctions may also be remedies for breach of contract, but they are not the main common law remedies.

Question 16

The main purpose of damages is to:

Accepted Answer

The main purpose of damages is to restore the innocent party to the position they would have been in if the breach had not occurred. It is not to compensate for inconvenience or stress caused by the breach, penalize the guilty party or place the innocent party in a position of profit.

Question 17

Which one of the following is not an equitable remedy?

Accepted Answer

Damages is not an equitable remedy, but a legal remedy. Equitable remedies are those that seek to provide fairness and justice, while legal remedies focus on compensation for harm or injury suffered. Specific performance, rectification, and restitution are all examples of equitable remedies.

Question 18

Oona has breached a contract.She will be liable for a loss that arises from this breach if,when the contract was being made:

Accepted Answer

The correct answer is C because in contract law, a party is liable for losses that were communicated as potential consequences of a breach at the time the contract was made. This establishes that the breaching party was aware that such a loss could occur, making it a foreseeable consequence of their breach.

Question 19

The purpose of damages is to restore the innocent party (the plaintiff)to the position they would have been in if:

Accepted Answer

The purpose of damages is to put the innocent party in the position they would have been in if the breach had not occurred. This means that they should be compensated for any losses or damages they incurred as a result of the breach, as if the contract had been performed as agreed upon. Option B is the most accurate statement that aligns with this purpose.

Question 20

Who am I? I am a case or cases where a travel company that breached its contract was ordered to pay damages for disappointment and distress.

Accepted Answer

Jarvis v Swan Tours and Baltic Shipping Co Pty Ltd v Dillon are notable cases where travel companies were ordered to pay damages for disappointment and distress, highlighting the recognition of non-pecuniary losses in contract law.

Quiz 17: Remedies for Breach of Contract