Contract Law - Breach and Frustration

Question 1

Discharge by Breach

Answer 1

Does not always discharge the contract - unless breach is of a condition or innominate term if serious enough

Question 2

Anticipatory Breach

Answer 2

Occurs if before performance is due one party indicates they will not be able to fulfil their obligations under the contract

Do not need to wait until breach actually occurs to claim damages

Question 3

Discharge by Frustration

Answer 3

Occurs after contract formed

Neither party at fault

Subject matter is destroyed or performance of contract illegal

Performance of contract being more difficult or different than anticipated does not amount to frustration

If event was foreseeable or covered by the contract this is not frustration

Question 4

Law Reform (Frustrated Contracts) Act 1943

Answer 4

All sums paid in respect of the contract before discharge will be recoverable

Does not apply to:

• Charterparties
• Insurance contracts
• Sale of goods where goods have perished