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Frustration - Barrier to dealings due in no part to the fault of either party.

E.g. Taylor vs Caldwell

Voidable contract- failure by one or both parties to disclose a material fact; a

mistake, misrepresentation or fraud; undue influence or duress; one party's
legal incapacity to enter a contract; one or more terms that are
unconscionable; or a breach of contract.

Void- A contract that cannot be enforced from the time it is created i.e. the

Unenforceable contract- A contract that is legal but it cannot be enforced

because of some factor. E.g. It is legal to buy a fridge but because a child is
under age and enters into a contract, the contract cannot be enforced

2.2 Three Most Important of Remedies Available for Breach of Contract

The consequences can be significant if a contracts terms are broken and the contract is
enforceable. The plaintiff can pursue a variety of options when it is clear that the other party
has breached a contract. Some of the remedies that may be sought include suit for specific
performance, damages and injunction.
2.2.1 Suit for Specific Performance
Specific performance is applied in breach of contract actions where monetary damages are
inadequate. Specific performance is being a discretionary remedy, may not be granted where
damages will provide an adequate remedy or where terms of the contract are uncertain or
where there has been delay in bringing the action or where there was fraud. Suit for specific
performance is by compelling the parties to perform exactly what they had agreed in the
When this option is selected, the party that broke the contract is taken to court, with the
plaintiff requesting that the court force the defendant to perform the specific contract terms
that have not been performed or to refrain from engaging in some activity that is prohibited
by the contract. For example, Lucas wanted to purchase a land to build a shopping mall, so
he has signed an agreement with the real estate brokers to purchase the vacant land nearby
the town area. But at the last minute is told that Lucas will not be granted the land because of
the real estate brokers has got another potential client who is interested in this land and
willing to pay a higher price as well. In this case, Lucas could bring legal action to force the
real estate brokers to keep its promises and grant the land.
2.2.2 Liquidated Damages
Damages mean losses or costs incurred due to anothers wrongful act. Damages are granted to
a party as compensation for the damage, loss or injury he or she has suffered through a
breach of contract. The language of a contract will usually call for a specific penalty if the
contract terms are not completed on an agreed-upon date. Both of the contract and tort law
damages are the courts calculation of what it would cost to put the plaintiff back into the
position he or she would have been in but for the fraud. This amount of value that has been
lost is due to the breach of the contract in any of the contracts. Tort law damages are much
more difficult to evaluate but generally are taken to represent the monetary value of what the
plaintiff has lost in terms of damages of property, personal injuries, and quality of life. For
example, a building contractor has agreed to complete the theme park beside Hard Rock
hotel, penalties may be built into the contract itself if the job is not completed on time. The
contractor may have offered the penalty option as an incentive to win the contract.
Liquidated damages refer to these penalty payments. When a contract is breached, the
liquidated damages could be imposed.
Special damages are known as the out of pocket expenses that the defendant incurs as the
effect of dealing with the injuries or property loss caused by the plaintiff. These damages
normally include of repair costs, medical expenses, car rentals and loss of wages.
2.2.3 Injunction
An injunction which is an equitable remedy may be interlocutory, or mandatory. It may even
be prohibitory or restraining in nature. An interlocutory injunction is used to maintain the
status quo of the subject matter in a pending suit whilst a mandatory injunction is a court
order requiring something to be done. A prohibitory injunction stops something from being
done. For example, Alan wanted to sell his restaurant due to the financial problem he is
facing now so he offers his restaurant for RM6000000. Wilson is interested with his
restaurant and agreed with the price given. Thus, Wilson signs a contract with Alan for take
over his restaurant. After the contract has been signed, another buyer, Taylor is also
interested with Alans restaurant and willing to pay higher price, RM 6300000. So Alan
changed his mind and going to sell his restaurant to Taylor. Based on this case, when Wilson
found out that Alan is going to sell his restaurant to Taylor, Wilson has the right to apply an
injunction from the court. It is because Wilson and Alan have signed a contract before this.
The court will take action and stop Alan for selling his restaurant to Taylor.

Tort Law multiple choice