Validity, Termination and Remedies of Contract
27 important questions on Validity, Termination and Remedies of Contract
When is a contract invalid?
What are the 3 reasons for a voidable contract?
2. Duress and economic duress
3. Undue influence
What are the 3 reasons for a void contract?
2. Illegality
3. Contract in restraint of trade (in principle)
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What is the difference between a term and a representation?
What are the 3 requirements to bring legal action for misrepresentation?
2. The statement must have been made before or at the time of the contract
3. The representation must have induced the other party to enter into the contract
What are the 3 types of misrepresentation in which the state of mind of the maker of the statement is taken into consideration?
2. Negligent misrepresentation (lack of reasonable care in making the statement)
3. Fraudulent misrepresentation (maker was aware of statement not being true or was reckless as to whether it was true)
How is a misrepresentation dealt with in tort?
2. No damages for innocent misrepresentation
What is economic duress?
What are the 4 types of mistakes that make a contract void?
2. Mistaken identity
3. Common mistake
4. Mutual mistake
What is a non est factum mistake?
What is a mistaken identity mistake?
What is a mutual mistake?
What is illegality in contracts?
When are contracts in restraint of trade (non-compete agreements) not per definition void?
What are the 4 ways to discharge a contract?
2. By agreement
3. By breach
4. By frustration
What does discharge by agreement entail?
What does discharge by breach entail?
What is a notice of default?
What does discharge by frustration entail?
What are the 4 reasons for discharge by frustration?
2. Inability - to achieve main object
3. Law changes/governmental actions
4. Death/permanent illness
What is summary dismissal?
When is damage proximate and loss by breach of contract can be claimed?
2. Indirect loss - that could've been reasonably foreseen by the breaker as at the time of the contract he was aware of the special circumstances that could lead to the additional loss
What are stipulated damages?
What is a liquidated damages clause?
What are the 3 remedies for breach of Contract in Equity?
2. Specific performance - an order to make a party perform its contractual obligations
3. Injunction - order to stop a party breaking a negative stipulation in a contract (force someone to do something or stop someone doing something)
What are the 3 circumstances in which specific performance is awarded?
2. If the court is able to supervise performance
3. If it is equitable to grant an order
What is the difference between common law and statute law with regards to frustration?
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