QUESTION 1

What would be the appropriate remedy in each of the following breaches of contract? Your answer should state the:

• Most likely remedy and the specific area e.g. 1) equitable remedy - specific performance or e.g. 2) common law damages - reliance losses; plus
• Best supporting case.

Each part is worth 2.5 marks

1. Mary breaches her contract to play for the Jets football team after having a fight with the team captain. Contrary to a clause in her contract she starts playing with another team in the same competition.

1. John and Fryda read a brochure about a seaside resort offering a one-week holiday package that includes scuba diving and whale watching. They book a package only to find, when they arrive, that the scuba tanks have been declared unsafe and cannot be used and the boat used for whale watching has been put on dry dock for its annual maintenance inspection, repair, and keel painting.

1. Cathy purchases a second-hand vehicle after the seller had promised that there was absolutely no rust. She would not have entered the contract had she known about the rust.

1. Liz enters into an oral agreement with Bruno where he agrees to build her a house for $500,000. Bruno builds the house but Liz then refuses to pay. The agreement was made in a state where building contracts of this type have to be in writing.