1. 1 How breach may occur 2 Express repudiation 3 One party renders performance impossible 4 Failure of performance 5 Types of remedies 6 Damages 7 Equitable remedies 8 Quantum meruit 9 Enforcing judgment

2. 1 How breach may occur (1) Express repudiation (2) One party renders performance impossible (3) Failure of performance 2 Express repudiation (1) Known as anticipatory breach: before the agreed time of performance (2) Repudiation may occur after performance has begun.

3. 3 One party renders performance impossible (1) May take place either before or after performance Case illustration: A agrees to sell her Ferrai car to B for $ 30000 to be delivered in 3 weeks. A few days later, X unaware of contract between A and B, offers A $35000 for the same car. A agrees and delivers it to X that day. B may sue A for breach of contract.

4. 4 Failure of performance (1) Partial performance, non-performance (2) Substantial performance Case illustration: a. A contract of sale calls for delivery of 6000 T of coal in 12 installments of about 500 T each. The buyer shall provide the trucks to take coal away. In the first month the buyer sends sufficient trucks taking away only 400 T. Such minor breach will not discharge seller from its obligation to stand ready to provide the remaining 5600 T. b. A seller is required by contract of sale to deliver 150 T of iron per month but delivers only 21 T in the first month. Such default is very likely sufficient to discharge the buyer from the contract.

5. 5 Types of remedies (1) Damages (2) Equitable remedies: specific performance, injunction, rescisison (3) quantum meruit 6 Damages 6.1 Purpose: compensation + economic deterrent 6.2 Mitigation of damages Victim can recover only for such losses resulting from the breach as it couldn’t avoid by acting reasonably.

6. 6.3 Prerequisites (1) Must “flow from the breach naturally”. (2) Not includes unusual or unexpected consequence of breach. 6.4 Types of damages ○ Consequential damages: lost profits on any resale and damage claims against the buyer by its own customers. ○ Expectation damages: include expected profits ○ General damages ○ Reliance damages ○ Liquidated damages: wei yue jin ○ Nominal damages

7. 7 Equitable remedies (1) Specific performance (2) Injunction (3) Rescission 8 Quantum meruit 9 Enforcing judgment Register the judgment with the office of the sheriff of the county at the locality of the debtor, and ask him to levy execution against the debtor’s assets.