1. Which of the following isCORRECT?

a. Repudiation can occur via an express statement or can be implied by conduct, if it is evident that there is an intention to no longer be bound by the contract.

b. Repudiation gives rise to a right to claim damages, but whether or not there is a right to terminate the contract depends upon the nature of the term that has been breached.

c. Repudiation must be clearly and expressly stated by a party, and cannot be implied by conduct.

d. Repudiation occurs where there is a breach of condition, as conditions are terms that go to the heart of a contract.

2. Jen enters into a contract to purchase a music player from Henry, who lives in the USA. After the contract is formed, but before dispatch of the game is due, the United States Postal Service suspends deliveries to Australia. Which of the following is CORRECT?

a.There is no frustration here, because the change in circumstances occurred before performance was due.

b.The contract has been frustrated, because performance of the contract is now impossible.

c.There is no frustration here, because Henry has the option to use a courier firm rather than regular post, even though this is likely to be more expensive.

d.There is frustration here, if the use of a courier firm is significantly more expensive than regular post.

3. Company A installs central air conditioning at Bill's office premises, for a contract price of $5,000. The air conditioning system is installed, but there are defects in workmanship that will cost $100 to remedy. What payment is Company A entitled to?

a. The full contract price of $5,000 minus the cost to rectify the defects, as the defects would be considered to be minor relative to the contract price, indicating that the contract has been substantially performed.

b. Nothing, as they did not substantially perform the contract.

c.The full contract price of $5,000, as this is what was agreed upon between the parties in their contract.

d.Nothing, as they have acted contrary to industry standards.

4.In which scenario would a court be likely to order specific performance rather than awarding damages, involving the breach of a contract between Jess and Kylo,?

a.A contract where Jess agrees to undertake construction work for Kylo's business.

b.A contract where Jess agrees to supply casual workers for Kylo's business, over the course of the next year.

c.A contract where Jess agrees to sell a rare artefact to Kylo, for his collection of antiquities.

d.A contract for Jess to provide a professional development presentation to staff at Kylo's business.

5. Bob's printing service fails to produce Kin's art prints required for her exhibition. To ensure that the prints will be ready for the night, as Kin requires, she needs to have them quickly printed elsewhere. Sourcing alternative printing services leads to Kiara incurring higher printing costs, Kinwould be entitled to:

a.No damages, as delays in these kinds of contracts are reasonably foreseeable.

b.Damages to compensate her for her additional printing costs, as well as damages representing her distress, because this is her expectation loss.

c.Damages to compensate her for her additional printing costs, as this is her expectation loss. Her distress will not be taken into account in calculating damages.

d.Nominal damages only, as Kiara's actual loss is too hard to quantify.