Contract - Discharge of Contract Flashcards

You may prefer our related Brainscape-certified flashcards:
1
Q

What are the 4 ways a contract can be discharged?

A
  • Performance
  • Agreement
  • Frustration
  • Breach
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Performance (Cutter v Powell)

A

Parties must perform the requirements laid down for them completely

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Exceptions to entire performance rule

A
  • Substantial performance
  • Severable/divisible contracts
  • Voluntary acceptance of a partial performance
  • Prevention of performance
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Substantial performance (incl. 2 cases)

A

Only minor defects to claim the price of the work done (Hoenig v Isaacs; Bolton v Mahadeva)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Severable/divisible contracts (incl. case)

A

Payment becomes due at various stages rather in one lump sum (Ritchie v Atkinson)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Voluntary acceptance of a partial performance (incl. case)

A

Must be freely accepted and had a genuine choice (Sumpter v Hedges)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Prevention of performance (incl. case)

A

By some fault of the other party (Planche v Colburn)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Agreement

A
  • Parties simply agree to terminate the contract
  • Distinction made between bilateral discharge and unilateral discharge
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Frustration

A

After a contract is made, through no fault of either party, a change in circumstances may make the contract either:
- impossible to perform
- illegal to perform
- radically different from what the parties contemplated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

In order to frustrate the contract, the event must be… (incl. 2 cases)

A
  • Supervening
  • Unforeseeable (Amalgamated Investment v John Walker)
  • neither party’s fault (the Eugenia)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Impossible to perform (Taylor v Caldwell)

A

Destruction or unavailability of something essential/fundamental for contract’s performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Illegal to perform (Fibrosa v Fairbairn Lawson)

A

After the contract is formed a change in law makes performance illegal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A drastic change in circumstances (incl. case)

A

It should make the contract radically different or pointless (Krell v Henry)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Categories of Frustration

A
  • Destruction of matter (Taylor v Caldwell)
  • Unavailability or delay
  • Frustration of purpose (Krell v Henry)
  • Supervening illegal/government intervention (Fibrosa v Fairbairn)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

The Sea Angel

A

Test: whether the purpose of the contract has been frustrated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Limits to frustration

A
  • Frustrating event occurs before the contract is made (Taylor v Caldwell)
  • The contract makes provision for such an event
  • The event merely renders the contract more onerous to perform (Davis Contractors v Fareham)
  • It was foreseen/foreseeable
  • Self induced (Maritime National Fish Ltd v Ocean Trawlers)
17
Q

Legal consequences of frustration

A
  • Contract is automatically terminated from the point at which the frustrating event occurred
  • Obligations which would have arisen no longer exist - but acts done before the frustrating event may have legal consequences
18
Q

Similarities between frustration and mistake

A
  • Both concerned with allocation of risk of an unforeseeable event that makes the contractual performance either impossible or radically different
  • The finding of both mistake and frustration depends on the construction/interpretation of the contract
19
Q

Differences between frustration and mistake

A
  • Timing
  • Scope
  • Legal effect
20
Q

What are the two types of breach?

A
  1. Actual
  2. Anticipatory
21
Q

What is an actual breach?

A

If the contract is completed but has not fulfilled the criteria of the terms/goes against the contents of the contract

22
Q

What is an anticipatory breach?

A

If one party can see that the performing party is planning on breaching the contract.

23
Q

What is the effect of an anticipatory breach? (incl. case)

A

Hochster v de la Tour - can immediately sue

24
Q

What is an innominate term (incl. case)?

A

Hong Kong Fir Shipping - a term which is neither a condition or a warranty; you find out upon breach of the term whether it should allow for damages to be rewarded as if it was a condition or warranty

25
Q

What is the effect of a breach of condition (incl. case)?

A

Can claim for damages and treat the contract as repudiated (i.e. terminated/discharged) e.g. Poussard v Spiers

26
Q

What is the effect of breach of warranty?

A

Can claim for damage for loss suffered but must continue with the contract e.g. Bettini v Gye

27
Q

What is the effect of breach of an innominate term?

A

depending on how serious the breach is:
- major consequences - treat as a breach of condition
- minor consequences - treat as a breach of warranty

28
Q

Charles v Oppenheim (breach)

A

Late performance will always amount to a breach of contract giving right to damages; or if the time was ‘part of the essence’ of the contract