Question

In: Accounting

QUESTION 1                                    What would be the appropriate remedy i

QUESTION 1                       

           

What would be the appropriate remedy in each of the following breaches of contract? Your answer should state the:

  • Most likely remedy and the specific area e.g. 1) equitable remedy – specific performance or e.g. 2) common law damages – reliance losses; plus
  • Best supporting case.

Each part is worth 2.5 marks

  1. Mary breaches her contract to play for the Jets football team after having a fight with the team captain. Contrary to a clause in her contract she starts playing with another team in the same competition.
  1. Fred and Jane read a brochure about a seaside resort offering a one-week holiday package that includes scuba diving and whale watching. They book a package only to find, when they arrive, that the scuba tanks have been declared unsafe and cannot be used and the boat used for whale watching has been put on dry dock for its annual maintenance inspection, repair, and keel painting.
  1. Fiona purchases a Commodore after the seller had promised that there was absolutely no rust. She would not have entered the contract had she known about the rust.
  1. Emma enters into an oral agreement with Fred where he agrees to build her a house for $500,000. Fred builds the house but Emma refuses to pay. The agreement was made in a state where building contracts of this type have to be in writing.

Solutions

Expert Solution

Mary breaches her contract to play for the Jets football team after having a fight with the team captain. Contrary to a clause in her contract she starts playing with another team in the same competition.

The remedy for this situation will be claiming the damages from Mary for breaching the contract which she entered to play with Jets Footbal team, instead she played with the another team.

Fred and Jane read a brochure about a seaside resort offering a one-week holiday package that includes scuba diving and whale watching. They book a package only to find, when they arrive, that the scuba tanks have been declared unsafe and cannot be used and the boat used for whale watching has been put on dry dock for its annual maintenance inspection, repair, and keel painting.

In this situation Fred and Jane can get the remedy of specific performance once the boats are available for whale watching and when teh scuba diving is safe

Fiona purchases a Commodore after the seller had promised that there was absolutely no rust. She would not have entered the contract had she known about the rust.

There is a material breach of contract as the seller promised to sell commodore that has no rust. Fiona can ask for specific performance or can cliam the damages caused for the material breach of the contract

Emma enters into an oral agreement with Fred where he agrees to build her a house for $500,000. Fred builds the house but Emma refuses to pay. The agreement was made in a state where building contracts of this type have to be in writing.

Since , the agreement requires to be written for the the building contracts of this type in the state of agreement, the Oral agreement is a void contract and cannot claim any remedy for the breach of contract by Fred.


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