Queenie hired Toni to paint her portrait, but Toni breached their contract by refusing to complete the work. Queenie is entitled to various remedies under the law. She can terminate the contract and reject further performance from Toni. Queenie can also claim damages to recover her $3,000 payment and put her in the same financial position as if Toni had fulfilled the contract. While specific performance of the painting is not available, Queenie could seek an injunction to prevent Toni from working for others in breach of their agreement.
Queenie hired Toni to paint her portrait, but Toni breached their contract by refusing to complete the work. Queenie is entitled to various remedies under the law. She can terminate the contract and reject further performance from Toni. Queenie can also claim damages to recover her $3,000 payment and put her in the same financial position as if Toni had fulfilled the contract. While specific performance of the painting is not available, Queenie could seek an injunction to prevent Toni from working for others in breach of their agreement.
Queenie hired Toni to paint her portrait, but Toni breached their contract by refusing to complete the work. Queenie is entitled to various remedies under the law. She can terminate the contract and reject further performance from Toni. Queenie can also claim damages to recover her $3,000 payment and put her in the same financial position as if Toni had fulfilled the contract. While specific performance of the painting is not available, Queenie could seek an injunction to prevent Toni from working for others in breach of their agreement.
Queenie hired Toni to paint her portrait, but Toni breached their contract by refusing to complete the work. Queenie is entitled to various remedies under the law. She can terminate the contract and reject further performance from Toni. Queenie can also claim damages to recover her $3,000 payment and put her in the same financial position as if Toni had fulfilled the contract. While specific performance of the painting is not available, Queenie could seek an injunction to prevent Toni from working for others in breach of their agreement.
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Step 1: Identify the principal or issue of law
The principal or issue of law is remedies for breach of contract.
Step 2: Explain the rule(s) of law relevant to the principle/area/issue of law
identified in step one with reference to authority A contract is discharged by complete performance, but when there is a failure to perform, a breach of contract occur. In this circumstances, the innocent party is entitled to claim a remedy. The innocent party can choose what remedy they seek for from the court. They can ask for a combination of remedies or an alternate remedy should the court not entertain their preferred choice. There are two types of remedies which are common law remedies and equitable remedies. Common law remedies categories into termination and claim for damages. Equitable remedies categories into specific performances and injunction. In common law, termination allows the innocent party to reject the attempted performance and put an end to any further specific performance of outstanding obligation. Termination of performance is only available as a remedy for relatively serious breaches of contract. An innocent party who seek a remedy must be able to prove a breach of a condition. In the case of Associated Newspapers Ltd v Bancks (1951) 83 CLR 322, Bancks a cartoonist agreed to produce a weekly full-page drawing for Associated Newspaper with a pay of salary and published on the front page of the newspaper comic section. However, he realise that his drawings appeared on the third page of the comic section. Bancks had expressed his dissatisfied but Associated Newspaper ignored him. Bancks decided to terminate the further performance of the contract. In this case, court justified Bancks to terminate the contract because the promise to publish Bancks drawings on front page of comics section is an essential term to let his entered the contract. Claim for damages is an award of money to compensate for a loss. Damages are not a punishment, there are compensatory. The aim of damage is to put the innocent party in the financial position they would have been in had the contract been properly performed. In the case of Radford v de Froberville [1978] 1 All ER 33, Radford owned two adjacent blocks of land and he sold one to de Froberville on condition to build an expensive brick wall on the boundary. However, she failed to build and resold to third party. Radford sued de Froberville for damages for breach of contract. The issue of contract is what was the appreciate measure of damages. The court stated that Radford was entitle to claim for damages equal to the cost of actually constructing the wall. Only those losses flowing from the breach of contract can be compensated. Losses that are too remote, unforeseeable will not be claimable as damages. Damages can be claimed to compensate for two type of loss which are direct loss and consequential loss. Direct loss occurring in the usual or normal course of things from the breach. This can seen in the case of Victoria Laundry (Windsor) Ltd v Newman Industries Ltd [1949] 2 KB 528. Newman sold a boiler to Victoria but the boiler was delivery five months late. As a result of not having enough laundry capacity, Victoria Laundry lost of ordinary profit and missed out their lucrative contract with government. Victoria Laundry sued Newman and sought to claim both losses. The issue was whether Victoria could claim for the losses. The decision was they only could claim the loss of ordinary profit. The loss of the cleaning contract with the government was too remote to be claimed, especially considering that no notice brought to attention of Newman. Consequential loss is occur as a result of special or exceptional circumstances where the risk of such loss was made known to the other party at the time the contract was entered into. In the case of Hadley v Baxendale (1854) 2 CLR 517; 9 Exch 341. The crankshaft of Hadley mill broke, bringing operations to a complete halt. Regarding the request of the manufacturer to have the broken shaft for replacement, Hadley consigned broken shaft to Baxendale a carrier to deliver to the manufacturer on next day. However, he delayed for several days. Hadley claimed damages for breach of contract from Baxendale to compensate for the loss of profits caused by the delayed. The issue of the court is whether Hadley entitled to compensation for the loss profit. The court decided that Hadley was not entitled because normally it would be expected that a mill have a spare shaft and it was not reasonably foreseeable that a broken shaft would cause a complete halt of production. Besides, damage usually not awarded to compensate a party who suffered disappointed and distress as a result of a breach of contract, except when the contract was for the provision of enjoyment, relaxation or pleasure. In the case of Baltic Shipping Co v Dillon [1993] HCA 4; (1993) 176 CLR 344, Dillon booked and paid for cruise on a passenger ship. Few day later, the ship struck a rock and sank. Apart from physical injuries and emotional trauma, Dillon suffered from disappointed and distress. She sued Baltic Shipping for damages to compensate this. The issue of the court was whether Dillon entitled to damages for disappointed and distress from a breach of contract. The decision was the damages should be awarded because the defaulting party agreed to provide a pleasure and relax vacation. The plaintiff will not be able to recover any loss that could have been avoided by the exercise of reasonable care. If the plaintiff takes reasonable steps to avoid loss but suffer further loss, the defendant will be liable for that further loss. Where the plaintiff successfully avoids loss by taking mitigating action, the defendant is only liable for the reduced loss. In the case of Burns v Man Automotive (Aust) Pty Ltd (1986) 161 CLR 653, MAN Automotive supplied a large commercial vehicle to Burns but the vehicle supplied was defective. However, Burns persisted in trying to use it and accumulated substantial operating losses in the process. Burns sued for damage to compensate for lost profits. The issue is to what extent must a plaintiff take steps to mitigate losses. The decision was a plaintiff is not required to take steps to mitigate loss if the plaintiff does not have the necessary meant to do so. Specific performance is a court order to perform as promised under contract when a compensation is an inadequate damage. Specific performances is not available for personal service contract and continual supervision of court necessary. In the case of Lumley v Wagner (1852) 42 ER 687, Wagner contracted to sing in Lumleys theatre for fixed period. She also promised that during this period, she would not to perform anywhere else. Lumley wished to enforce both of those promised. The issue of the court was whether the court would enforce specific performance of Wagner promise to sing in Lumleys theatre. The court decided that actual performance of this promise would not be ordered. Injunctions are court order requiring a person to do or not do something. Before injunction is granted, plaintiff must show legal right of a proprietary nature, infringement is likely to continue or be repeated, damages are an inadequate remedy and contract is final expression of parties rights. This can show in case of Buckenara v Hawthorn Football Club Ltd [1988] VR 39. Buckenara was a football player contracted to play for the Hawthorn Football Club. As part of agreement, Buckenara promised not to play for any competing club while contracted to Hawthorn. When it seemed that Buckenara intended to play for competing club, Hawthorn sought an injunction to prevent the threatened breach of contract. The issue of the court is would the court issue an injunction to prevent breach of contract. The court ordered Buckenara not to play for any other club which was in competition with Hawthorn because there is a threatened breach of contract. Step 3: Apply the law to the facts of the question in a detailed and logical manner When a breach of contract occurs, Queenie is entitled to claim a remedy from Toni. By looking at the facts of scenario, Toni is defendant and Queenie is plaintiff. Tony had breach the contract as he refused to complete the portrait of Queenie. At common law, Queenie is entitled to terminate the contract by rejecting the attempted performances and put an end to any further specific performance of outstanding obligations by Toni. Moreover, Queenie entitled to claim for damages because the aim of damages is to put the innocent party in this case Queenie in the financial position she would have been in had the contract been properly performed and therefore, Queenie would be able to claim damages equal to the cost of complete painting. Queenie also entitled to claim back the upfront payment of $3000 as Toni partial performance the portrait of Queenie as direct loss which occurred in the usual or normal course of things from the breach. However, Queenie may not able to claim for damages od disappoint and distress due to incomplete portrait on the contract is for painting portrait not for the provision of enjoyment, relaxation and pleasure. In this circumstances, specific performance is not available for Queenie as painting a portrait is a personal service. As stated in the case, Queenie had included a term stating that Toni is not to work for other within duration of contract. Therefore, Queenie entitle sought an injunction to prevent the threatened breach of contract. Step 4: Draw possible conclusion
In conclusion, Queenie can claim for common law remedies and equitable remedies in this case.
A Short View of the Laws Now Subsisting with Respect to the Powers of the East India Company
To Borrow Money under their Seal, and to Incur Debts in
the Course of their Trade, by the Purchase of Goods on
Credit, and by Freighting Ships or other Mercantile
Transactions
Safe Deposit Bank and Trust Company v. Eugene B. Berman, Trustee, in The Matter of Fernandes Welding & Equipment Service, Inc., Bankrupt, 393 F.2d 401, 1st Cir. (1968)