#CL- discharge Flashcards
what are the three ways a contract can be discharged
performance, breach,frustration
what is the perfect tender rule
contract is only done when complete, totally and exactly done
what are the court mechanisms to make the perfect tender rule fair
can get payment if the contract is divisible, c paid for parts done
if contract is whole or substantially done - c paid appropriate amount ‘ quantum meirt’
partly done = part performance, d must consent to appropriate payment
when will time be held as a condition to a contract
not done in time?
was time of the essence?
expressly stated?
was there an extension?
if time is not a condition it will be…
a warranty. C will get compensation.
Cutter v Powell
contract for full voyage, not done contract Perfect tender rule
Ritchie v Atkinson
contract was divisible, entitled to be paid for parts of contract he had done.
Dakin & Co v Lee
the contract was substantially done as only minor defects in the work.
Planche v Colburn
author prevented from carrying out contract so paid on quantum merit rule
Sumpter v Hedges
builder did not finish work. customer had to finish it- builder not entitled to part payment
Union Eagle ltd v golden achievement ltd
time was off the essence. for all it was only 10 minutes late. contract could be repudiated
Charles Rickards ltd v Oppenheim ltd
he had made time of the essence so he was able to cancel out of the contract
what is a breach
complete or total failure to perform a contract or failing to perform exactly
what is the remedy for a breach
depends on whether condition or a warranty
condition= damages and or repudiation
warranty=just damages
when can C sue in a breach
anticipatory breach= c has warning in advanced that it will not be preformed, c must mitigate and can either sue now or …
actual breach=d does not perform when agreed to
Hochster v de la tour
anticipatory breach occurs when a party to a contract gives notice in advanced to the other party that the contract will not be performed
Geden operations ltd v Dry bulk handy holdings
sets out when a breach can be treated as anticipatory
what is frustration
unforeseeable unpredictable event that prevents a party from performing a contract
what are three examples of frustrating events
now illegal to perform- was legal at the time
now impossible to perform (performance of services when ill)
radical change in circumstances. main purpose of contract over.
what are not frustrating events
not radically different enough in parties control now just more difficult to perform event was foreseeable clause on contract
what are the remedies for frustration
common law- future obligations cancelled
LRFCA 1943 (law reform for frustrated contracts act)- money paid to be returned reasonable sum for enrichments gained
Taylor v Caldwell
music hall destroyed, frustrated contract neither parties fault.
Jackson v Union marine insurance co ltd
long delay lead to running aground. contract frustrated
Denny Mott and Dickinson ltd V James B Fraser and co
law changed so importing these goods become illegal, thus frustrating the contract
