Contract Law

Case Study
Pages 8 (2008 words)
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ASL agrees to supply an oven for the kitchen in Alan's new restaurant in Castlerea. The oven is to be installed at the restaurant in time for the grand opening on 1st November 2008. Due to terrible weather nearly all the roads leading to the restaurant are flooded.


As a consequence, Alan loses 15,000 on advertising, 7,000 on advanced bookings and 8,000 prospective profit from a wedding party who wanted to take over the whole restaurant for one night.
(a) Standards of Contractual Duty : The general rule is that performance of a contract should be precise and exact. A party performing an obligation under a contract must perform that obligation exactly within the time frame set by the contract and exactly to the standard required by the contract. Whether the alleged performance satisfies this criterion is a question to be answered by construing the contract, so as to see what the parties meant by performance, and then applying the ascertained facts to that construction, to see whether that which has been done corresponds to that which was promised. If there is a slightest deviation from the terms of the contract, the party not in default will be entitled to say that the contract has not been performed, will be entitled to sue for damages for breach, and, in certain cases, to elect to be discharged(Re Moore&Co. ...
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