Chapt 6 Discharge Of Contracts

Question 1

General rule that a contract must be fully performed to be discharged by performance

Which. Case?

Answer 1

Cutter v Powell 1795

Question 2

Mitigation of the rule about entire performance (in discharge of contracts)

There are 5 exceptions

Answer 2

Cutter v Powell 1795

1. Acceptance of partial performance - sumpter v hedges 1898 (but not if no choice)
2. Substantial performance - hoeing v Isaacs 1952 VS Bolton v mahedeva 1972
3. One party prevent performance - Planche v Colburn 1831
4. Divisible or severable contracts
5. Breach of terms concerning time and whether or not “time is of the essence”

Question 3

How does a breach of a condition entitle the innocent party to repudiate the contract?

Answer 3

Repudiate means bring to an end

Poussard v Spires 1876✅ but not Bettini 1876 as that was a warranty

Condition goes to “the root” of the contract

Question 4

How might parties agree to a discharge of a contract?

Answer 4

“Accord and satisfaction” -this is a promise from both parties not to enforce the contract

Accord = letting them off

Satisfaction = getting something in return (consideration)

Question 5

What does it mean when a contract is frustrated?

Which case?

Answer 5

This is an event which is the fault of neither party which renders the contract impossible or illegal to perform or undermining its commercial purpose.
Main cases- Taylor v Caldwell /Krell v Henry

Brings contract to end, neither can sue for breach.

Initial common law rules- losses lie where they fall (Appleby v Myers) but now…Payer rule- money paid before is recoverable and money NOT PAID is no longer due

Payee rule- may be able to keep /recover money where expenses incurred and court considers just
Case to go with it- Gamerco SA v ICM 1995

Question 6

4 examples of frustrating events

And main general case to state?

Answer 6

Taylor v Caldwell - eatablished the doctrine of frustrated contracts

1. Destruction of subject matter (Taylor v Caldwell 1863)
2. Illness or death of a a party ((Condor v Barron Knights)
3. Supervening illegality (Fibrosa Spolka 1943)
4. Event, the sole reason for the contract does not take place (Krell v Henry 1903)

Question 7

3 examples of non frustrating events

Answer 7

• events anticipated and provided for (Metropolitan Waterboard v Dick, Kerr and co 1918)
• events making contract more expensive/onerous (Davis contractors v Fareham UDC 1956)
• self induced frustration (super servant 2 1990)

Question 8

Statutory interventions relating to frustrated contracts

Which Act?
Backed up by which case?

Answer 8

Law Reform (FC) Act 1943: (s1(2))

Payer rule- money paid before is recoverable and money NOT PAID is no longer due

Payee rule- may be able to keep /recover money where expenses incurred and court considers just

Case to go with it- Gamerco SA v ICM 1995

Question 9

What is frustration (4)

And what does it do?

Answer 9

1. Supervening event
2. Involves something essential to the contract
3. Unforeseen circs
4. fault of neither party

It ends the contract

Question 10

General facts about frustration

Check this card

Answer 10

Will discharge contract

Neither party can sue

Money lies where it falls (Appleby v Myers ) but sometimes Payee/payer rule (gamerco v icm/ lR (FC) 1943

Money paid CAN be recovered where there is total failure of consideration