Chapter 5 Key facts checklists

Contract IV: discharge of contract and remedies for breach

Contracts can be discharged in numerous ways – through performance, agreement, frustration, or breach.
In the event of frustration, the parties can establish their own remedies or they can rely on the provisions developed through the Law Reform (Frustrated Contracts) Act 1943.
Remedies have been established through the common law and equity.
Damages are the primary remedy in most cases, but equitable remedies include specific performance, injunctions, and rectification.
The innocent party must proactively (albeit reasonably) attempt to mitigate his/her losses following a breach of contract.
The courts will usually identify the award of damages following a breach. However, the parties may agree such awards in advance (called liquidated damages) insofar as they are not a penalty clause.