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A legal contract can be terminated by breach, frustration or agreement - Leaving Cert Business - Question B - 2012
Question B
A legal contract can be terminated by breach, frustration or agreement. Illustrate your understanding of the underlined terms. A contract may be terminated: If one... show full transcript
Worked Solution & Example Answer:A legal contract can be terminated by breach, frustration or agreement - Leaving Cert Business - Question B - 2012
Step 1
By Breach
Answer
A breach occurs when one party fails to fulfill their part of a contract. For instance, if a contract specifies that furniture must be made from black leather, but it is instead delivered in red polyester, this constitutes a significant breach. The injured party is entitled to seek remedies such as rescinding the contract, claiming damages, or demanding specific performance.
Step 2
By Frustration
Answer
Frustration refers to a situation where an unforeseen event occurs that makes it impossible for a contract to be completed. A common example of this is the death or bankruptcy of one of the contracting parties, which precludes the fulfillment of contractual obligations.
Step 3
By Agreement
Answer
Contracts can also be terminated by mutual agreement of both parties involved. This is often the case when the original aim of the contract has been achieved or is no longer relevant. For instance, if a contract includes a term allowing for termination with one month's notice, either party can terminate the agreement accordingly.