通知：2019年6月ACCA考试报名条件已公布

正确答案：

The essential issues to be disentangled from the problem scenario relate to breach of contract and the remedies available for such breach.
There seems to be no doubt that there is a contractual agreement between Arti and Bee Ltd. Normally breach of a contract occurs where one of the parties to the agreement fails to comply, either completely or satisfactorily, with their obligations under it. However, such a definition does not appear to apply in this case as the time has not yet come when Arti has to produce the text. He has merely indicated that he has no intention of doing so. This is an example of the operation of the doctrine of anticipatory breach.
This arises precisely where one party, prior to the actual due date of performance, demonstrates an intention not to perform. their contractual obligations. The intention not to fulfil the contract can be either express or implied.
Express anticipatory breach occurs where a party actually states that they will not perform. their contractual obligations (Hochster v De La Tour (1853)). Implied anticipatory breach occurs where a party carries out some act which makes performance impossible
Omnium Enterprises v Sutherland (1919)).
When anticipatory breach takes place the innocent party can sue for damages immediately on receipt of the notification of the other party’s intention to repudiate the contract, without waiting for the actual contractual date of performance as in Hochster v De La Tour. Alternatively, they can wait until the actual time for performance before taking action. In the latter instance, they are entitled to make preparations for performance, and claim the agreed contract price (White and Carter (Councils) v McGregor (1961)).
It would appear that Arti’s action is clearly an instance of express anticipatory breach and that Bee Ltd has the right either to accept the repudiation immediately or affirm the contract and take action against Arti at the time for performance (Vitol SA v Norelf Ltd (1996)). In any event Arti is bound to complete his contractual promise or suffer the consequences of his breach of contract.
Remedies for breach of contract

(i) Specific performance It will sometimes suit a party to break their contractual obligations, even if they have to pay damages. In such circumstances the court can make an order for specific performance to require the party in breach to complete their part of the contract. However, as specific performance is not available in respect of contracts of employment or personal service Arti cannot be legally required to write the book for Bee Ltd (Ryan v Mutual Tontine Westminster Chambers Association (1893)). This means that the only remedy against Arti lies in the award of damages.
(ii) Damages A breach of contract will result in the innocent party being able to sue for damages.
Bee Ltd, therefore, can sue Bob for damages, but the important issue relates to the extent of such damages.
The estimation of what damages are to be paid by a party in breach of contract can be divided into two parts: remoteness and measure.
Remoteness of damage
The rule in Hadley v Baxendale (1845) states that damages will only be awarded in respect of losses which arise naturally, or which both parties may reasonably be supposed to have contemplated when the contract was made, as a probable result of its breach.

The effect of the first part of the rule in Hadley v Baxendale is that the party in breach is deemed to expect the normal consequences of the breach, whether they actually expected them or not. Under the second part of the rule, however, the party in breach can only be held liable for abnormal consequences where they have actual knowledge that the abnormal consequences might follow (Victoria Laundry Ltd v Newham Industries Ltd (1949)).

Measure of damages
Damages in contract are intended to compensate an injured party for any financial loss sustained as a consequence of another party’s breach. The object is not to punish the party in breach, so the amount of damages awarded can never be greater than the actual loss suffered. The aim is to put the injured party in the same position they would have been in had the contract been properly performed. In order to achieve this end the claimant is placed under a duty to mitigate losses. This means that the injured party has to take all reasonable steps to minimise their loss (Payzu v Saunders (1919)). Although such a duty did not appear to apply in relation to anticipatory breach as decided in White and Carter (Councils) v McGregor (1961)(above).
Applying these rules to the fact situation in the problem it is evident that as Arti has effected an anticipatory breach of his contract with Bee Ltd he will be liable to them for damages suffered as a consequence, if indeed they suffer damage as a result of his breach. As Bee Ltd will be under a duty to mitigate their losses, they will have to commit their best endeavours to find someone else to produce the required text on time. If they can do so at no further cost then they would suffer no loss, but any additional costs in producing the text will have to be borne by Arti.
However, if Bee Ltd is unable to produce the required text on time the situation becomes more complicated.
(i) As regards the profits from the contract to supply the accountancy body with all its text, the issue would be as to whether this was normal profit or amounted to an unexpected gain, as it was not part of Bee Ltd’s normal market when the contract was signed. If Victoria Laundry Ltd v Newham Industries Ltd were to be applied it is unlikely that Bee Ltd would be able to claim that loss of profit from Arti. However, it is equally plausible that the contract was an ordinary commercial one and that Arti would have to recompense Bee Ltd for any losses suffered from its failure to complete contractual performance.
(ii) As for the extensive preliminary expenses Arti would certainly be liable for them, as long as they were in the ordinary course of Bee Ltd’s business and were not excessive (Anglia Television v Reed (1972)).

正确答案：
(ii) Sensitivity analysis could be used to assess how responsive the NPV calculated in part (a) in respect of each decision
option change is to changes in the variables used to calculate it. The application of sensitivity analysis requires that the
net present values are calculated under alternative assumptions in order to determine how sensitive they are to changing
conditions. In this particular example then a relatively small change in the forecast cash flows might lead to a change
in the investment decision. The application of sensitivity analysis can indicate those variables to which the NPV is most
sensitive and the extent to which these variables may change before an investment results in a negative NPV. Thus the
application of sensitivity analysis may provide management with an indication of why a particular project might fail. The
directors of Stay Cool Ltd should give consideration to the potential variations in the independent variables which feature
in the decision-making process such as:
– estimated revenues
– estimated operating costs
– estimated working lives
– estimated repair costs
– the estimated discount rate i.e. cost of capital of each alternative investment.
Sensitivity analysis has some serious limitations. The use of the method requires changes in each variable under
consideration are isolated. However management may be focused on what happens if changes occur in two or more
critical variables. Another problem relating to the use of sensitivity analysis to forecast outcomes lies in the fact that it
provides no indication of the likelihood of the occurrence of changes in critical variables.

正确答案：
(b) Trying to focus on and improve the measurement of customer satisfaction.
This is a vital goal. Without monitoring and improvement of levels of customer satisfaction, an organisation will tend to
underachieve and is likely to have problems with its future effectiveness. Positive signals from performance measures made
earlier in the value chain are only relevant if they contribute to the ultimate requirement of customer satisfaction. Tunnel vision
and sub-optimisation are examples of measurement problems that may be reduced through recognition of the need for a
management focus on customer satisfaction. For example undue focus on the importance of maximising opening hours may
lead to lack of focus on other quality issues seen as important by customers.
Involving staff at all levels in the development and implementation of performance measures.
People are involved in the achievement of performance measures at all levels and in all aspects of an organisation. It is
important that all staff are willing to accept and work towards any performance measures that are developed to monitor their
part in the operation of the organisation and in the achievement of its objectives. This should help, for example, to reduce
gaming. At the sports complex an example of gaming might be, a deliberate attempt to understate the potential benefits of
maintaining the buildings in order to ensure that funds would be used for other purposes such as an increased advertising
budget. The directors of Astrodome Sports Ltd must recognise that leisure facilities that appear dated and in a poor state of
repair will cause customers to look for more aesthetically appealing alternatives.
Being flexible in the extent to which formal performance measures are relied on.
It is best to acknowledge that measures should not be relied on exclusively for control. A performance measure may give a
short-term signal that does not relate directly to actions that are taking place to improve the level of performance in the longer
term. To some extent, improved performance may be achieved through the informal interaction between individuals and
groups. This flexibility should help to reduce measure fixation and misrepresentation. For example the percentage increase in
the quantity of bowling equipment purchased is seen as necessarily implying increased demand for use of the bowling greens.
Giving consideration to the audit of the performance measurement system.
Actions that may be taken may include:
– Seeking expert interpretation of the performance measures in place. It is important that any audit is ‘free from bias’ and
conducted independently on an ‘arm’s length’ basis. Thus it is essential that such audits should be ‘free from the
influence’ of those personnel involved in the operation of the system.
– Maintaining a careful audit of the data used. Any assessment scheme is only as good as the data on which it is founded
and how this data is analysed and interpreted.
The above actions should help, in particular, to reduce the incidence and impact of measure fixation, misinterpretation and
gaming.
For example, an audit may show that the directors of Astrodome Sports Ltd are fixated on equipment availability and
misinterpret this as being the key to customer volume and high profitability. The audit may also provide evidence of gaming
such as a deliberate attempt to underplay the benefits of one course of action in order to release funds for use on some
alternative.