Contract Law -> Performance and Breach

Question 1

What is a “Condition” and what happens when its breached

Answer 1

A condition is a key term in a contract. It is fundamental and must be completed. Breaching a condition can lead to the innocent party discharging the contract.

Question 2

What is a “Warranty” and what happens when its breached

Answer 2

A warranty is a less key term in a contract. It is a “secondary promise.” Breaching a warranty can lead to the innocent party claiming damages but can NOT discharge the contract

Question 3

What is an “Innominate” term and what happens when its breached

Answer 3

An Innominate term falls between both a warranty and condition. Breaching this term can result in either discharging the contract, claiming damages, or both, depending on the severity of the breach.

Question 4

What is partial performance?

Answer 4

Partial performance is the idea where a party only completes part of a contract

Question 5

Case law for partial performance NOT being accepted

Answer 5

Cutter v Powell [1775]

Question 6

Case law for partial performance BEING accepted

Answer 6

Hoenig v Issacs [1952]

Question 7

Outline the principle of “accord and satisfaction”

Answer 7

This is the concept which occurs when both parties have failed to complete their contractual duties. They can discharge the contract as long as their promises are are supported by consideration.

Accord = The agreement to which and obligation is carried out
Satisfaction = The consideration supplied by the parties to support the agreement