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Read the information supplied and answer the questions which follow - Leaving Cert Business - Question 1(A) - 2018
Question 1(A)
Read the information supplied and answer the questions which follow. The band ‘Stand and Deliver’ officially cancelled their upcoming tour due to the death of their... show full transcript
Worked Solution & Example Answer:Read the information supplied and answer the questions which follow - Leaving Cert Business - Question 1(A) - 2018
Step 1
Explain the method of terminating the legal contract referred to in the text above.
Answer
The method of terminating the legal contract in this case is known as frustration. Frustration occurs when an unforeseen event prevents the contract from being completed. In this instance, the death of the singer, Richard Stears, creates an insurmountable obstacle that makes it impossible for the band to fulfill their contractual obligations related to the tour. Therefore, the contract is considered frustrated and is automatically terminated.
Step 2
Outline three other methods for terminating a legal contract, providing an example in each case.
Answer
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Breach: If one of the parties fails to perform their obligations under the contract, this is considered a breach. For example, if a builder was contracted to construct a conservatory but only built a room with a single window, the homeowner could claim a breach of contract and seek damages.
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Agreement: Parties to a contract may mutually agree to terminate it. For instance, if two parties are engaged to a contract but find that it no longer serves their interests, they can agree to bring the contract to a conclusion by mutual consent, such as cancelling the project altogether.
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Performance: A contract can be terminated when the parties have fulfilled their obligations as per the contract. For example, if a band is booked to perform at a wedding and they perform as agreed, once the performance is completed, the contract is considered fulfilled and thus terminated.