Commercial Law: Contract Termination and Breach of Contract

Running head: COMMERCIAL LAW
Q & A
Name of the Student
Name of the University
Author Note

1COMMERCIAL LAW
Table of Contents
Answer to problem 3.......................................................................................................................2
Issue:............................................................................................................................................2
Rules:...........................................................................................................................................2
Application:.................................................................................................................................3
Conclusion:..................................................................................................................................4
Reference:........................................................................................................................................5

2COMMERCIAL LAW
Answer to problem 3
Issue:
The central issue of the case is to consider whether the artwork company can terminate
the contract with Laura or not.
Rules:
This case is based on the provision of contract and termination of contract. A contract is a
legal agreement signed in between two or more parties that binds both the parties legally. A
contract includes certain offer and acceptance of the offer. Once a contract has been signed in
between the two parties, the terms will be mandatory in nature. However, there are certain
processes by which a contract can be terminated by either party. The processes can be
categorized as impossibility of performance, breach of contract, prior agreement, and rescission
of contract and completion of contract. Apart from the above mentioned topic, there are certain
other grounds by which the liabilities of the parties to the contract can be exceeded. The
exclusion clause is one of them. however, in this case, the provision of breach of contract has
been discussed.
In case of any contract, offer and acceptance plays important role. When a party has
made an offer and the other person accepts the same, contract has been formed in between them.
After the formation of contract, both the parties are obliged to follow the terms and conditions of
the contract. Breach of contract happens if any of the parties to the contract does not perform any
condition mentioned in the contract. According to the Law of Contract, both the parties to the
contract are obliged to perform their duties as specified in the contract. In case of breach of
contract, the other party to the contract can terminate the contract entirely or partially.