CONTRACT - DISCHARGE Flashcards
WHAT IS DISCHARGE?
When a contract comes to an end.
HOW CAN A CONTRACT BE DISCHARGED?
Agreement, performance, breach, frustration
AGREEMENT - BILATERAL DISCHARGE
Both sides benefit from the termination of the contract
AGREEMENT - UNILATERAL DISCHARGE
Only one party benefits from the discharge of the contract
BREACH - ACTUAL
The breach occurs at the agreed time for the contract to be performed/is not forewarned
ACTUAL BREACH CASE
Platform Funding LTD v Bank of Scotland plc 2008
BREACH - ANTICIPATORY
The party gives prior notice that they will not be able to fulfil their end of the contract
ANTICIPATORY BREACH CASES
Frost v Knight 1877
Avery v Bowden 1855
PERFORMANCE
CUTTER V POWELL 1795: If a contract requires absolute performance and the party fails to perform this, they are entitled to nothing under the contract from the other party
SUBSTANTIAL PERFORMANCE
If the party has done a substantial amount of what was required, the party can recover the amount appropriate to what was done under the contract.
SUBSTANTIAL PERFORMANCE CASES
Dakin & Co v Lee 1916 (Dakin them over)
PERFORMANCE - SEVERABLE CONTRACTS
Available when the contract involved stages of payment instead of a lump sum. If one stage is performed, that party is entitled to only that sum of money.
ACCEPTANCE OF PART PERFORMANCE
Where one side partially performed but the other party is willing to accept that, Cutler v Powell may not apply.
ACCEPTANCE OF PART PERFORMANCE CASE
Sumpter v Hedges 1898
PREVENTION OF PERFORMANCE
If the other party prevents the party from carrying out their obligations via some act or omission, Cutter v Powell doesn’t apply. Party trying to perform may have an action for damages
PREVENTION OF PERFORMANCE CASE
Startup v MacDonald 1843
PERFORMANCE - BREACHES OF TERMS INVOLVING TIME
If all obligations are performed but not within the necessary time frame, it can give rise to damages but not repudiation of the contract
