Explain the Methods of Termination


Instructions:

Ben planned the perfect surprise birthday party for his mother: He hired a hall, he hired a violinist and he organised catering. Two weeks prior to the event, the violinist called to cancel. Ben was so upset at the loss of what he thought would be the highlight of the evening that he called the whole event off. Ben lost both the deposit on the hall and the deposit for the catering. Which of the following is correct? A) Ben can sue the violinist for all losses after Ben cancelled the hiring of the hall. B) Ben can recover his hire fees and catering fees since it was not his fault. C) The caterers and hall owners can sue the violinist for losses. D) Ben has a duty to mitigate his losses. Which of the following is NOT a method of termination? A) Agreement. B) Frustration. C) Breach. D) Rectification. In Hadley v Baxendale (1854) 9 Exch 341; 156 ER 145 the court recognised “reasonably foreseeable losses” as being: A) All losses that a plaintiff can prove beyond reasonable doubt. B) Losses that arise naturally from a breach of contract. C) Losses that are actually contemplated by the parties. D) B&C.

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