Student Number 17231794
Words: 1500
LW118 Contract Law Problem Question Assignment
Qu 1. Facts:
Peig and Sarah entered a contract with Galway Bay Brewery. Galway Bay Brewery agreed to supply 100 kegs of beer a month for 6 months in exchange for €24,000. After a month Galway Bay Brewery because of broken machinery was only able to supply 60 kegs to which Peig and Sarah agreed to. After three months Peig and Sarah asked Galway Bay Brewery to supply the original 100 kegs per month in exchange for an additional €5,000. When then contract finished Peig and Sarah only agreed to pay €19,200.
Issues:
Does Peig and Sarah’s refusal to pay the outstanding €24,000 plus the extra €5,000 promised, amount to a material breach of contract? …show more content…
A breach of contract is said to have occurred when one of the parties entered into the contract does not honour the given terms.t
In order to be able to claim a breach of contract in court one must first establish that there was a contract in the first place. To do this there must be proof that there was an, agreement, and consideration.
Agreements are obligations between one or more parties that are enforceable by law. To determine whether there had been an agreement in place between the two parties the conduct of the parties involved must indicate that they intended to create legal relations as found in Storer v Manchester City Council [1974] 3 All ER 824.
A consideration is a something of value which is exchanged for something else of value.
In order for one to claim damages proof must be provided that the breach caused the non breaching party a loss of money, time or opportunity, and a contract can only be terminated in the case of a breach of a fundamental term in the contract.
Analysis:
Peig and Sarah’s acceptance of the Galway Bay Brewery’s offer of 60 kegs of beer per month until the Galway Bay Brewery can get their equipment fixed, means that Galway Bay Brewery are freed from the terms of the original