Exam 14: Breach of Contract and Remedies

Princess Alicia hires Renaldo, the artist to paint her portrait. The two disagreed. Renaldo said, "I'm done!" He left the palace. What remedy is available to Princess Alicia?

Antoine, a bush pilot, agrees to ferry an exploration crew from Gamma Oil to a remote part of Alberta in his helicopter, and to retrieve them a month later. Three weeks into the bush, the Gamma team learn through listening to local radio chatter on their short-wave radio that Antoine has sold his helicopter to a pilot in New Brunswick. Should Antoine have failed to make arrangements for the extraction of the crew, he can successfully claim for half of his fee by virtue of the doctrine of substantial performance, and in fact his full performance of the first half of his obligation.

Paul ordered a motorbike from Moto-Haus. He had reviewed all the specifications and told the salesperson of his final choice. When the bike arrived, Paul found that it did not live up to the fuel efficiency that he expected or that was claimed in the brochure. He took the bike back to Moto-Haus, and demanded the return of his money, which was refused. Paul would be best advised to:

Antoine, a bush pilot, agrees to ferry an exploration crew from Gamma Oil to a remote part of Alberta in his helicopter, and to retrieve them a month later. Three weeks into the bush, the Gamma team learn through listening to local radio chatter on their short-wave radio that Antoine has sold his helicopter to a pilot in New Brunswick. The circumstances indicate express repudiation by Antoine.

A condition may become a warranty ex post facto.

Robin offered to sell her 10-speed touring bicycle to Felicia for $200 on her return from a two-week bicycle trip to a distant city. At the end of the first week, Felicia received a long distance telephone call from Robin, in which Robin advised Felicia that she had decided not to sell the bicycle on her return. Felicia was disappointed, as a similar bicycle on the market would cost her at least $250. She decided to wait until Robin returned then urge her to go through with the sale. Before Robin reached home, her bicycle was stolen, and never found. Felicia is entitled to claim damages for the difference in value between the agreed price and the price of a similar bicycle on the market.

Eric was painting the interior of Erna's house. While he was painting, Erna was constantly nattering at him. One day, he quietly packed up all of his equipment, waved good-bye and left. He had almost completed the job and had two walls left in the small bedroom. What did Eric's actions constitute?

Awards which are not compensation of the plaintiff but rather punishment of the defendant for a breach of contract which is deceitful, malicious, or offensive to ordinary standards of morality are known as which kind of damages?

Robin offered to sell her 10-speed touring bicycle to Felicia for $200 on her return from a two-week bicycle trip to a distant city. At the end of the first week, Felicia received a long distance telephone call from Robin, in which Robin advised Felicia that she had decided not to sell the bicycle on her return. Felicia was disappointed, as a similar bicycle on the market would cost her at least $250. She decided to wait until Robin returned then urge her to go through with the sale. Before Robin reached home, her bicycle was stolen, and never found. Robin's decision not to proceed with the sale was an express repudiation of the contract.

Nature's Flowers is required, as a condition of their contract, to supply the Ubiquitous Chip, a trendy restaurant, with 45 flower arrangements for tables and three large displays, twice a week. This week, it was two table arrangements short one day and three short on the other. Nature's Flowers is entitled to invoke the doctrine of quantum meruit and be paid for the value of what was delivered.

Andrew, a carpenter, entered into a contract with Steven for the construction of a garage on Steven's property for $5,000. Andrew had constructed the entire garage except for a small door, when he refused to complete the contract. Andrew's refusal to complete the agreement would entitle Steven to treat the contract as being at an end. He may therefore refuse to pay Andrew for his work.

Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre, and to perform nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. Barnum may request the court to issue an injunction to prevent Mario from performing at the competitor's opera house.

Guthrie Caterers failed to turn up as contracted to cater Dev and Rabinda's wedding reception. The deposit, which was the only money paid to that point, was returned by courier the next morning without comment. If Guthrie had called a week before the wedding, this would have been a breach de minimis of the contract.

Zenia contracts with Yvonne for a supply of specialized computer components worth $6,000, which she needs to meet a contract to supply Wendy with 60 laptop computers, a contract which is worth $65,000 to Zenia. Zenia makes it clear to Yvonne that her contract with Wendy is vital to let her get established in the market and that it is imperative that Yvonne meet the deadline. "If you can't," she says, "I'll take the business to someone who can." Yvonne wants the business badly, so, against her better judgment, she agrees to a clause in the contract which says that, for every day delivery is late, she will pay Zenia $10,000.

Robin offered to sell her 10-speed touring bicycle to Felicia for $200 on her return from a two-week bicycle trip to a distant city. At the end of the first week, Felicia received a long distance telephone call from Robin, in which Robin advised Felicia that she had decided not to sell the bicycle on her return. Felicia was disappointed, as a similar bicycle on the market would cost her at least $250. She decided to wait until Robin returned then urge her to go through with the sale. Before Robin reached home, her bicycle was stolen, and never found. Felicia cannot recover anything from Robin for repudiation of the contract, because the contract was frustrated before the date fixed for performance.

Andrew, a carpenter, entered into a contract with Steven for the construction of a garage on Steven's property for $5,000. Andrew had constructed the entire garage except for a small door, when he refused to complete the contract. Andrew would not be entitled to claim payment, because he has not finished his part of the agreement.

Hygrade Fruit Juice Co. entered into a contract with Citrus Suppliers Ltd. for the supply of orange concentrate for its juice production operation. The terms of the contract provided that Citrus would supply Hygrade with 1,000 cases of oranges at $10, per case one month later, subject to a deposit of $4,000 on signing the contract and the balance on delivery. The contract further provided that in the event of breach or repudiation of the agreement by Hygrade, the deposit would be forfeited as liquidated damages. A week after the contract was signed, a senior representative from Hygrade was meeting with a broker from Citrus on a particular matter when their discussion degenerated into an argument that culminated with the representative from Hygrade saying "We've suffered along with your substandard product long enough. We've paid you too much in the past and you're ruining the reputation of our juices. Are you getting this next shipment from the same source?" The citrus representative responded affirmatively. "Then you can just stuff the next shipment." At that, the representative from Hygrade left. The fruit to be supplied to Hygrade was costing Citrus $5,000 from their source in Florida, USA. Taking the actions of Hygrade as repudiation, Citrus commenced negotiations with Cake & Cookie Co. for their purchase of the fruit. Cake & Cookie required the fruit for flavouring certain of their products, but certainly did not require high-grade fruit. As this was the case, regardless of the quality of Citrus's offering, Cake & Cookie was prepared to offer only $5,000 for the shipment to take it off Citrus's hands. At the time, other juice manufacturers for whom the fruit was suitable were offering $9,000 for a similar product. On learning of the impending sale between Citrus and Cake & Cookie, Hygrade immediately brought an action for an injunction against the sale and a return of their deposit, which they alleged was not liquidated damages. Citrus immediately filed an action against Hygrade in response, holding on to their $4,000 deposit and suing Hygrade for the $1,000 of lost profits that would have been generated by a sale to Hygrade. Discuss the arguments that will be raised by the parties and render a decision. D.L.R. (3d) 1.

Nature's Flowers is required, as a condition of their contract, to supply the Ubiquitous Chip, a trendy restaurant, with 45 flower arrangements for tables and three large displays, twice a week. This week, it was two table arrangements short one day and three short on the other. The Ubiquitous Chip can argue that Nature's Flowers have breached a condition of the contract and treat the contract as being at an end, which means they would not have to pay for the flowers delivered.

Trendy Imports entered into a contract on June 1^st with Neat Things, a small upscale gift shop, to supply it with 100 tooled leather boxes. Delivery was to be made on September 15^th so that the boxes could be on display in the store by October 15^th, ready for the pre-Christmas rush. On August 6^th, Trendy notified Neat Things that a dock strike in Italy was holding up the shipment and, if the boat on which they were loaded could not leave port within a very few days, Trendy would not be able to make the delivery on September 15^th. In this situation,

Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre, and to perform nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. The court may order Mario to continue to perform at Barnum's theatre, because he had promised to work only for him.