Termination of a contract and remedies for breach of contract. - SS2 Commerce Past Questions and Answers - page 1
What is one way a contract can be terminated?
Performance
Breach of contract
All of the above
Which remedy for breach of contract involves the payment of a monetary amount to compensate the innocent party?
Specific performance
Damages
Restitution
When can a contract be terminated by the operation of law?
When the subject matter of the contract is destroyed
When both parties mutually agree to terminate
When one party fails to fulfill their obligations
What is the purpose of specific performance as a remedy for breach of contract?
To award monetary compensation
To cancel the contract and return parties to their pre-contractual positions
To require the breaching party to fulfill their contractual obligations
To require the breaching party to fulfill their contractual obligations
What does rescission involve?
Cancelling the contract and returning parties to their pre-contractual positions
Awarding monetary compensation to the innocent party
Restoring any benefits conferred by the innocent party
Cancelling the contract and returning parties to their pre-contractual positions
Explain the concept of damages as a remedy for breach of contract.
Damages are a monetary amount awarded to the innocent party to compensate for the loss or harm suffered due to the breach of contract. The goal is to place the injured party in the position they would have been in had the breach not occurred.
What is the purpose of restitution as a remedy for breach of contract?
Restitution aims to restore any benefits or advantages that the innocent party may have conferred upon the breaching party. It involves returning any property, money, or services received under the contract.