Gibson, Business Law 11^th Edition

Chapter 6: Rights and Liabilities of the Parties, Discharge and Remedies

LO 6.1 Discuss the doctrine of privity of contract.

Multiple choice: Choose the one alternative that best completes the statement or answers the question.

1. Which of the following best describes the ‘privity of contract’ rule?
2. A third party is entitled to bring an action to enforce a contract to which they are not a party if they have the consent of one of the parties to do so.
3. The parties to the contract are under an obligation not to disclose the details of the contract to third parties.
4. Only the persons who are parties to the contract can acquire rights and incur liabilities under it.
5. The parties to the contract are only obliged to comply with the terms of the agreement and are not obliged to do any more than this.

Difficulty: Moderate

Topic: What is privity of contract

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.1 Discuss the doctrine of privity of contract.

1. Which of the following is not an exception to the doctrine of privity of contract?
   • • • 1. Estoppel.
         2. Negotiable instruments.
         3. A lease.
         4. A contract for the sale of land.

Difficulty: Moderate

Topic: What is privity of contract

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.1 Discuss the doctrine of privity of contract.

True/False: Identify whether the statement is True or False

1. According to the case of Trident General Insurance Co Ltd v. McNiece Bros Pty Ltd [1988] HCA 44, indemnity is not available to a party who is not part of the actual insurance policy.
   • • • 1. True
         2. False

Difficulty: Basic

Topic: What is privity of contract

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.1 Discuss the doctrine of privity of contract.

LO 6.2 Describe the circumstances in which novation and assignment of rights and liabilities can change contractual obligations.

Multiple choice: Choose the one alternative that best completes the statement or answers the question.

1. Which of the following is not an example of an assignment of rights by operation of law?
   • • • 1. Rights against a manufacturer under the Australian Consumer Law.
         2. Executor of a deceased estate.
         3. Bankruptcy.
         4. Assignments under the state property law statutes.

Difficulty: Moderate

Topic: Can you assign liabilities and rights

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 6.2 Describe the circumstances in which novation and assignment of rights and liabilities can change contractual obligations.

1. Which of the following statements is the best description of discharge by novation?
   • • • 1. One party leads the other to reasonably believe that strict performance will not be insisted upon.
         2. A new agreement is substituted for the old by the parties.
         3. Both parties abandon their original agreement while it is still executory.
         4. A party who has already performed their obligation agrees to relieve the other party from performing their obligation in return for their doing something different.

Difficulty: Moderate

Topic: Can you assign liabilities and rights

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.2 Describe the circumstances in which novation and assignment of rights and liabilities can change contractual obligations.

True/False: Identify whether the statement is True or False

1. A promise made by one party cannot be transferred to another party unless the other party has the same personal skills and competency as the promisor.
   • • • 1. True
         2. False

Difficulty: Complex

Topic: Can you assign liabilities and rights

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 6.2 Describe the circumstances in which novation and assignment of rights and liabilities can change contractual obligations.

Essay: Write your answer in the space provided or on a separate sheet of paper.

1. Explain the concept of novation.

Difficulty: Basic

Topic: Can you assign liabilities and rights

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.2 Describe the circumstances in which novation and assignment of rights and liabilities can change contractual obligations.

It also arises where parties wish to continue with a contractual relationship but on different terms from those in the original agreement. It involves the substitution of a new contract for the old one.

LO 6.3 List the ways in which a contract may be ended.

Multiple choice: Choose the one alternative that best completes the statement or answers the question.

1. Which one of the following statements involves the discharge of a contract by operation of law?
2. Performance of the contract becomes impossible due to the occurrence of an unforeseen event.
3. The parties carry out exactly the terms of the contract.
4. One of the parties becomes bankrupt.
5. Each party discharges the obligation of the other to perform the contract.

Difficulty: Moderate

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

1. In which of the following circumstances will partial performance of a contract by one party not give rise to a right to payment?
   • • • 1. Where the contract is entire.
         2. Where the other party has prevented them from completing the contract.
         3. Where the other party has freely and willingly accepted their partial performance.
         4. Where they have substantially, but not completely, performed the contract.

Difficulty: Moderate

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

1. Which of the following is the meaning of the Latin term ‘quantum meruit’?
   • • • 1. As much as the person has earned or as much as they deserve.
         2. The interpretation of an argument or document in the manner least favourable to the party who put it forward.
         3. Restoration to the original position.
         4. Let the buyer beware.

Difficulty: Basic

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

1. Mutual discharge occurs when:
   • • • 1. one party leads the other to reasonably believe that strict performance will not be insisted upon.
         2. a new agreement is substituted for the old by the parties.
         3. both parties abandon their original agreement while it is still executory.
         4. a party who has already performed their obligation agrees to relieve the other party from performing their obligation in return for their doing something different.

Difficulty: Moderate

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

1. Which of the following is the best description of discharge by release?
   • • • 1. A party who has already performed their obligation chooses to relieve the other party from performing their obligation.
         2. Both parties abandon their original agreement while it is still executory.
         3. One party leads the other to reasonably believe that strict performance will not be insisted upon.
         4. A party who has already performed their obligation agrees to relieve the other party from performing their obligation in return for their doing something different.

Difficulty: Moderate

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

1. Which of the following is not one of the requirements which must be satisfied before a contract will be frustrated?
   • • • 1. The frustrating event was outside of the control of the parties.
         2. It would be unjust to hold the parties to the original contract.
         3. The frustrating event was foreseen and referred to in the contract.
         4. The frustrating event has significantly or radically changed the obligations of the parties.

Difficulty: Moderate

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

1. The benefit of frustration is available in which of the following cases?
   • • • 1. Where one of the parties is subject to financial hardship which makes completion of the contract difficult.
         2. Where the cost of completing the contract becomes too high.
         3. Where it is inconvenient to complete the contract.
         4. Where an unforeseen event outside the control of the parties significantly changes their obligations and neither party was at fault.

Difficulty: Moderate

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

1. The purpose of the Frustrated Contracts Act 1978 (NSW) and S.A. is to:
   • • • 1. imply terms into the contract to govern the circumstances which have occurred.
         2. abolish the doctrine of frustration.
         3. ensure a fair adjustment of rights and losses between the parties.
         4. render all contracts enforceable despite the occurrence of a frustrating event.

Difficulty: Complex

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

1. The decision of the court in Cutter v Powell (1795) 101 ER 573 was that:
   • • • 1. The contract was divisible and the widow could recover the proportion of the contract amount equal to the number of days that Cutter had completed before he died.
         2. The contract was entire and hence the widow could recover nothing.
         3. Cutter’s death terminated the contract and the contract was therefore void.
         4. The widow of the deceased was entitled to payment based on a quantum meruit.

Difficulty: Moderate

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

1. Why did the court find that the contract was frustrated in the case of Codelfa Construction Pty Ltd v State Rail Authority (NSW) [1982] HCA 24?
   • • • 1. Due to the declaration of war and the consequent impossibility of performing the contract.
         2. Due to the non-occurrence of an event essential to achieve the substantial purpose of the contract.
         3. Due to the fundamental and radical change in the circumstances of the contract.
         4. Due to the complete destruction of the subject matter of the contract.

Difficulty: Basic

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

1. The decision of the court in Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour Ltd [1943] AC 32 was which of the following?
   • • • 1. That the manufacturer of the machine which was being built to meet the order of the purchaser could not recover the cost of manufacturing the machine because the frustrating event had intervened to terminate the contract.
         2. That the purchaser of the machine could recover the deposit which it had paid.
         3. That the contract was terminated by frustration.
         4. All of the above.

Difficulty: Moderate

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

True/False: Identify whether the statement is True or False

1. The Frustrated Contracts Act 1988 (SA) applies to a frustrated contract subject to any provision made in the contract itself as to the consequences of frustration.

A.True

B. False

Difficulty: Moderate

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

1. In Chapman v Taylor & Ors; Vero Insurance Ltd v Taylor & Ors [2004] NSWCA 456, the contract was found to be frustrated because of an unexpected event outside of Chapman’s control.
2. True
3. False

Difficulty: Basic

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

Essay: Write your answer in the space provided or on a separate sheet of paper.

1. Use a practical example to illustrate each of the four circumstances in which incomplete performance of your obligations under a contract legally and fairly gives rise to a right to at least partial payment.

Difficulty: Moderate

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Reflective thinking

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

1. Provide case law examples to illustrate how the doctrine of frustration has evolved over the years.

Difficulty: Moderate

Topic: How can a contract be ended

Standard/Graduate Attribute AACSB: Reflective thinking

Learning Outcome: LO 6.3 List the ways in which a contract may be ended.

LO 6.4 Explain the situations in which a contract may be breached.

Multiple choice: Choose the one alternative that best completes the statement or answers the question.

1. Which of the following is least likely to be classified as a breach of contract?
   • • • 1. A delay by one party in carrying out their obligations where time is of the essence.
         2. A failure by one party to comply with one of the terms of the contract.
         3. An announcement by one party that they do not intend to carry out their obligations under the contract.
         4. A failure by one party to exercise reasonable care in carrying out their obligations under the contract.

Difficulty: Moderate

Topic: Frustration by breach

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.4 Explain the situations in which a contract may be breached.

1. If a party promises to perform services, but fails to perform them in the time set forth by the contract, the party has committed a(n):
   • • • 1. actual breach.
         2. total breach.
         3. failure to comply.
         4. anticipatory breach.

Difficulty: Basic

Topic: Frustration by breach

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.4 Explain the situations in which a contract may be breached.

True/False: Identify whether the statement is True or False

1. A total breach renders a contract void ab initio.
   • • • 1. True
         2. False

Difficulty: Basic

Topic: Frustration by breach

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.4 Explain the situations in which a contract may be breached.

1. While not a remedy for breach of contract, restitution is available to avoid unjust enrichment.
   • • • 1. True
         2. False

Difficulty: Basic

Topic: Remedies available at common law

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.5 Recognise and explain the common law remedies for breach of contract.

Essay: Write your answer in the space provided or on a separate sheet of paper.

1. Discuss the consequences of one party failing to perform their contractual obligations.

Difficulty: Basic

Topic: Frustration by breach

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.4 Explain the situations in which a contract may be breached.

LO 6.5 Recognise and explain the common law remedies for breach of contract.

Multiple choice: Choose the one alternative that best completes the statement or answers the question.

1. Why was the plaintiff builder successful in the case of Pavey & Matthews Pty Ltd v Paul (1987) [1987] HCA 5?
   • • • 1. The work was completed with proper skill and on time.
         2. The defendant had repudiated the contract.
         3. The defendant had received a benefit from the builder’s performance of the contract.
         4. The contract was entire and not divisible.

Difficulty: Complex

Topic: Remedies available at common law

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 6.5 Recognise and explain the common law remedies for breach of contract.

True/False: Identify whether the statement is True or False

1. Compensation awarded to injured parties to a contract will vary depending on whether the contract is a consumer or non-consumer contract.
2. True
3. False

Difficulty: Basic

Topic: Remedies available at common law

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.5 Recognise and explain the common law remedies for breach of contract.

Essay: Write your answer in the space provided or on a separate sheet of paper.

1. What is the purpose of rescission?

Difficulty: Basic

Topic: Remedies available at common law

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 6.5 Recognise and explain the common law remedies for breach of contract.

LO 6.6 Identify the purpose of damages and explain the steps in determining an award of damages at common law.

Multiple choice: Choose the one alternative that best completes the statement or answers the question.

1. Which of the following statements best describes the duty of the injured party to ‘mitigate’ their loss?
   • • • 1. They must take all reasonable steps to minimise their loss.
         2. They must take all reasonable steps to prevent the breach.
         3. They must take all reasonable steps to report the breach to the court.
         4. They must take all reasonable steps to transfer the loss to the party in breach.

Difficulty: Moderate

Topic: How damages are determined for breach of contract

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 6.6 Identify the purpose of damages and explain the steps in determining an award of damages at common law.

1. Which of the following statements best describes the purpose of damages for breach of contract?
   • • • 1. To place the parties into the position they would have been in if the contract had been performed.
         2. To restore the parties to their pre-contractual position.
         3. To put the parties into the position they were in before the contract was breached.
         4. To punish the person responsible for the breach.

Difficulty: Moderate

Topic: How damages are determined for breach of contract

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 6.6 Identify the purpose of damages and explain the steps in determining an award of damages at common law.

1. Which of the following statements is the best description of ‘exemplary’ damages?
   • • • 1. An amount awarded where the innocent party’s rights have been infringed but they have suffered no actual loss.
         2. An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract.
         3. An amount awarded to punish the party in breach of the contract.
         4. An amount based upon a genuine pre-estimate of actual loss flowing from the breach of contract.

Difficulty: Basic

Topic: How damages are determined for breach of contract

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.6 Identify the purpose of damages and explain the steps in determining an award of damages at common law.

1. Which of the following statements is the best description of ‘ordinary’ damages?
   • • • 1. An amount awarded where the innocent party’s rights have been infringed but they have suffered no actual loss.
         2. An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract.
         3. An amount awarded to punish the party in breach of the contract.
         4. An amount based upon a genuine pre-estimate of actual loss flowing from the breach of contract.

Difficulty: Basic

Topic: How damages are determined for breach of contract

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.6 Identify the purpose of damages and explain the steps in determining an award of damages at common law.

1. Which of the following statements is the best description of ‘nominal’ damages?
   • • • 1. An amount awarded where the innocent party’s rights have been infringed but they have suffered no actual loss.
         2. An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract.
         3. An amount awarded to punish the party in breach of the contract.
         4. An amount based upon a genuine pre-estimate of actual loss flowing from the breach of contract.

Difficulty: Basic

Topic: How damages are determined for breach of contract

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.6 Identify the purpose of damages and explain the steps in determining an award of damages at common law.

1. Which of the following statements is the best description of ‘liquidated’ damages?
   • • • 1. An amount not fixed in the contract and left for the court to determine.
         2. An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract.
         3. An amount based upon a genuine pre-estimate of actual loss flowing from the breach of contract.
         4. An amount awarded to punish the party in breach of the contract.

Difficulty: Basic

Topic: How damages are determined for breach of contract

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.6 Identify the purpose of damages and explain the steps in determining an award of damages at common law.

1. Which of the following statements is the best description of ‘unliquidated’ damages?
   • • • 1. An amount awarded where the innocent party’s rights have been infringed but they have suffered no actual loss.
         2. An amount awarded to punish the party in breach of the contract.
         3. An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract.
         4. An amount not fixed in the contract and left for the court to determine.

Difficulty: Basic

Topic: How damages are determined for breach of contract

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.6 Identify the purpose of damages and explain the steps in determining an award of damages at common law.

1. To recover damages, the following steps must be established:
2. whether a breach existed.
3. if causation can be proved.
4. the type of loss incurred.
5. all of the above.

Difficulty: Basic

Topic: How damages are determined for breach of contract

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.6 Identify the purpose of damages and explain the steps in determining an award of damages at common law.

True/False: Identify whether the statement is True or False

1. When determining damages for breach of contract; the courts use a six-step process to assist injured parties.
2. True
3. False

Difficulty: Basic

Topic: How damages are determined for breach of contract

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.6 Identify the purpose of damages and explain the steps in determining an award of damages at common law.

1. In the case of Hadley v Baxendale (1854) 9 Ex 341, the breach of contract rule entitles a plaintiff to damages which are a natural consequence of the breach or expressly bought to the attention of the defendant.
2. True
3. False

Difficulty: Complex

Topic: How damages are determined for breach of contract

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 6.6 Identify the purpose of damages and explain the steps in determining an award of damages at common law.

1. In Howe v Teefy (1927) 27 SR (NSW) 301, the claim was rejected because the court could not calculate the potential future losses suffered by the plaintiff.
2. True
3. False

Difficulty: Moderate

Topic: How damages are determined for breach of contract

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 6.6 Identify the purpose of damages and explain the steps in determining an award of damages at common law.

Essay: Write your answer in the space provided or on a separate sheet of paper.

1. When a person fails to perform their obligations under a contract, why is it that they are not liable to compensate the innocent party for all of the loss and damage arising as a result of their breach?

Difficulty: Complex

Topic: How damages are determined for breach of contract

Standard/Graduate Attribute AACSB: Reflective thinking

Learning Outcome: LO 6.6 Identify the purpose of damages and explain the steps in determining an award of damages at common law.

1. Damages are a common law remedy, whereas specific performance and injunction are equitable remedies. How do common law remedies and equitable remedies differ?

Difficulty: Moderate

Topic: How damages are determined for breach of contract

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 6.6 Identify the purpose of damages and explain the steps in determining an award of damages at common law.

LO 6.7 List the main types of equitable remedies and explain situations where they may be used.

Multiple choice: Choose the one alternative that best completes the statement or answers the question

1. Which of the following statements is the best description of the remedy of ‘rescission’?
2. The injured party is entitled to set aside the contract and be restored to their pre-contractual position.
3. The party at fault is restrained from breaching the contract or from committing a wrongful act.
4. The party at fault is directed to carry out their obligations under the contract.
5. The party at fault has unjustly obtained a benefit at the injured party’s expense and is ordered to restore it to the injured party.

Difficulty: Basic

Topic: Equitable remedies

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.7 List the main types of equitable remedies and explain situations where they may be used.

1. According to JC Williamson Ltd v Lukey & Mulholland [1931] HCA 15, no damages were awarded because:
2. a claim for rescission must comply with the Statute of Frauds.
3. specific performance requires that the parties record the agreement in writing.
4. specific performance would require the court to supervise the order.
5. the verbal contract did not reflect the intention of the parties.

Difficulty: Complex

Topic: Equitable remedies

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 6.7 List the main types of equitable remedies and explain situations where they may be used.

1. Which of the following statements is the best description of a ‘mareva’ injunction?
   • • • 1. A court order requiring the person to perform some contractual obligation.
         2. A court order restraining the defendant from removing or disposing of assets until the court makes a decision.
         3. A court order preventing a breach of contract.
         4. A court order which freezes the status quo between the parties until the dispute can be heard by the court.

Difficulty: Basic

Topic: Equitable remedies

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.7 List the main types of equitable remedies and explain situations where they may be used.

1. According to the Anton Piller order, a plaintiff must be able to prove that:
   • • • 1. The defendant has purposefully prevented the plaintiff from meeting their contractual duties.
         2. A strong prima facie case exists along with incriminating damage against the plaintiff.
         3. A strong prima meruit case exists whereby the parties have a dispute about payment.
         4. The potential harm arising from the plaintiff is sufficient to cause serious damage.

Difficulty: Complex

Topic: Equitable remedies

Standard/Graduate Attribute AACSB: Analytical thinking

Learning Outcome: LO 6.7 List the main types of equitable remedies and explain situations where they may be used.

1. Which of the following remedies does not necessarily require the intervention of the court?
   • • • 1. Injunction.
         2. Restitution.
         3. Rescission.
         4. Damages.

Difficulty: Moderate

Topic: Equitable remedies

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.7 List the main types of equitable remedies and explain situations where they may be used.

1. In Lumley v Wagner (1852) 42 ER 687, the court:
   • • • 1. refused to grant any remedy.
         2. granted a decree of specific performance which required the singer to perform at Lumley’s theatre.
         3. made an order for damages against the singer for breach of contract.
         4. granted an injunction restraining the singer from breaching her contract to sing at Lumley’s theatre.

Difficulty: Moderate

Topic: Equitable remedies

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.7 List the main types of equitable remedies and explain situations where they may be used.

True/False: Identify whether the statement is True or False

1. An Anton Piller order is also known as a search order.
2. True
3. False

Difficulty: Basic

Topic: Equitable remedies

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.7 List the main types of equitable remedies and explain situations where they may be used.

1. A court may grant equitable remedies at the court’s discretion.
   • • • 1. True
         2. False

Difficulty: Basic

Topic: Equitable remedies

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.7 List the main types of equitable remedies and explain situations where they may be used.

1. In most Australian jurisdictions, the right to sue for breach of a simple contract is limited to the period of six years from the date on which the right of action accrues.
   • • • 1. True
         2. False

Difficulty: Basic

Topic: Is there a loss of right to sue

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.7 Explain the effect of the Statute of Limitations legislation of the states and territories on the parties to a contract.

Essay: Write your answer in the space provided or on a separate sheet of paper.

1. Do you think the courts should have the power to award damages at their discretion? Discuss.

Difficulty: Complex

Topic: Equitable remedies

Standard/Graduate Attribute AACSB: Reflective thinking

Learning Outcome: LO 6.7 List the main types of equitable remedies and explain situations where they may be used.

1. Courts can award damages arising from a breach of contract for personal feelings or reactions. Do you agree with this rule? Explain your answer.

Difficulty: Complex

Topic: Equitable remedies

Standard/Graduate Attribute AACSB: Reflective thinking

Learning Outcome: LO 6.7 List the main types of equitable remedies and explain situations where they may be used.

1. Explain the purpose of the Statute of Limitations legislation.

Difficulty: Basic

Topic: Is there a loss of right to sue

Standard/Graduate Attribute AACSB: Application of knowledge

Learning Outcome: LO 6.7 Explain the effect of the Statute of Limitations legislation of the states and territories on the parties to a contract.