How do I know which contract terms are conditions and which are warranties?

The contract may state it, but if not, courts decide. A condition is a term so important that its breach would destroy the main benefit of the contract, whereas a warranty is a less important, subsidiary term.

What if I can't remember the case name 'Hadley v Baxendale'?

Don't panic. While naming the case is good, explaining the 'remoteness rule' (losses must be foreseeable or contemplated) is what scores the marks. The concept is more important than the name.

What's the difference between termination and suing for damages?

Suing for damages is about getting financial compensation for your losses. Termination is about ending the contract entirely, and it's only possible for serious breaches (of a condition).

Am I expected to be a lawyer in the LW exam?

No, the examiner expects you to be a business professional with a good understanding of legal principles, not a lawyer. Focus on applying the main rules to the scenario, not on quoting complex legal arguments.

How much time should I spend on a problem question like this in the exam?

Apply the ACCA's own rule of 1.8 minutes per mark. A 10-mark question should take you about 18 minutes, including reading and planning. Structure is key to being efficient.

What if I get overwhelmed and forget the rules during the exam?

Focus on the basics. Ask yourself: 'What did the party fail to do?' (the breach), 'What loss did this cause?' and 'Does it seem fair for them to pay for that loss?' This common-sense approach often aligns with legal principles and will get you some marks.

Is specific performance a common remedy?

No, it's an equitable and discretionary remedy, granted only when damages are not an adequate remedy, for example, in contracts for unique items like land or rare art. For most commercial contracts in the exam, damages will be the primary remedy.

Do I need to calculate the exact interest on damages?

No, for the LW exam, you won't be expected to perform complex interest calculations. Focus on calculating the principal loss, as shown in the worked example.

LW Corporate and Business Law

Breach of Contract and Remedies: A Guide for LW

Understand breach of contract and remedies for the ACCA LW exam. This guide covers types of breach, how damages are calculated, and what examiners look for.