Analyse The Equitable Remedies For Breach Of Contract 4 / 4

662 others answered this question

Question 8.

Apt Ltd is a small independent book company, which specialises in publishing modern poetry. In January 2013 it signed a contract with a new poet, called Bel, to publish her second book of poems in August 2014. In March 2013, Bel won a prestigious award for her first book of poems, which had been published privately.

In the light of the fame which now attached to Bel, Apt Ltd launched an extensive advertising campaign publicising the forthcoming book. The campaign was expensive, costing £50,000, but it was successful in generating great interest. 
As a result, Apt Ltd won a contract to supply a large book club with 100,000 copies of the book, which would make them a profit of £250,000.

Unfortunately in May 2014, Bel informed Apt Ltd that she would not be able to supply the manuscript to it as she had signed a more rewarding contract with Cax plc, a very large publishing company.

Required:

In the context of Bel’s anticipatory breach of contract, explain any possible remedies open to Apt Ltd.

Reveal answer
419 others answered this question

Question 8ab

Az Ltd operates a shipbuilding business, which specialises in constructing and modifying ships to order. In 2011, the company entered into two contracts.

(a)

Az Ltd entered into an agreement with Blud to completely rebuild a ship to Blud’s specification for a total contract price of £7 million. However, just before completion, Blud informed Az Ltd that, due to the downturn in the world economy, he no longer needed the ship. Az Ltd immediately started an action against Blud for breach of contract. However, in the week before the case was to be decided in the court, Az Ltd sold the ship for the same amount of money that they would have received from Blud.

Required:

Advise Az Ltd whether it can claim damages from Blud, and the extent of those damages.

(b)

Az Ltd also entered into a contract to build a new ship for Cam for a total cost of £25 million. The contract terms provided that the total price was to be paid in 12 instalments and, in the event of Cam failing to make a payment, gave Az Ltd the right to terminate the agreement and claim an amount equal to 20% of the total contract price as damages. Any amount paid over the 20% was required to be returned to Cam.

Cam failed to make the first instalment payment, but refused to pay the damages as set out in the agreement on the grounds that they were excessive.

Required:

Advise Az Ltd whether it can claim damages from Cam, and the extent of those damages.

Reveal answer
375 others answered this question

Question 8ab

Ade, a keen pottery collector, saw a notice for an auction of Bede pottery in the January edition of Antiques News.             He travelled 300 kilometres to attend the auction in order to bid for a particularly rare example of Bede pottery, specifically mentioned in the lists of items to be auctioned. However, when he got to the auction site he found a notice outside, stating that the auction had been cancelled. Ade went into a nearby antique shop and saw an example of the type of pottery he had come to bid for. The price ticket stated that it was £500, but Ade said he was only willing to pay £350 for it. The shopkeeper, Chip, said he would sell it for £400 and as Ade said he would like time to think about it over lunch, Chip agreed not to sell it before Ade returned.

However, when Ade returned to buy the pottery, he found that Chip had already sold it to someone else, who had paid £450 for it.

Required:

In the context of contract law, advise Ade whether he can take action against:

(a) the auctioneers, for the expense of his travel to the auction; and

(b) Chip, for not selling the pottery to him.

Reveal answer