contract termination - usual ways Flashcards
what are the four reasons for the termination of a normal contract?
- performance
- agreement
- breach
- frustration
why can a contract end due to performance?
contract can end when both parties have done everything they agreed to do
what are the exceptions to contracts terminating due to performance?
severable contracts - contracts may end without everything being done, so only paid for parts which have been performed
total performance - contracts which state that you have to perform fully or get nothing in return
why can a contract end due to agreement?
both parties agree to end the contract before it has finished. has to be a mutual decision so that one party cannot sue for a breach of contract. can be agreed through deed, written or verbally.
if one party has already performed part of the contract, they should be compensated for it.
why can a contract end due to breach?
contract is able to end if one party breaks a contract in some way.
if a condition is breached –> end contract & claim damages
if a warranty is breached –> claim damages
what is an anticipatory breach of contract?
when it becomes clear that one party does not intend to honour obligations of the contract.
can sue when it becomes clear, or can wait till obligations are due (more favourable since easier to prove & calculate & claim losses)
why can a contract end due to frustration?
can be ended due to unforeseen & unexpected circumstances beyond your control which make the contract impossible / pointless to continue.
can become impossible / pointless if :
- subject is destroyed
- activity becomes illegal
- subject becomes unavailable
- subject is incapacitated / dead
- event doesnt happen
termination of a contract
taylor vs caldwell
frustration (subject is destroyed)
- theatre burned down, no ones fault
- physically impossible to act in play
- can’t meet conditions of contract
- terminated due to frustration
termination of a contract
re shipton anderson & co
frustration (activity becomes illegal)
- meant to deliver cargo of grain
- war broke out
- gov requistioned cargo
- couldn’t fulfill contract
- shipment became illegal
termination of a contract
morgan v manser
frustration (subject becomes unavailable)
- morgan called up for military service
- meant to perform in music hall
- contract became frustrated
- morgan had obligations elsewhere
termination of a contract
condor v barron knights
frustration (subject incapacitated / dead)
- condor part of barron knights
- fell ill
- became incapacitated
- unable to continue drumming for band
- impossible to continue so contract frustrated
termination of a contract
krell v henry
frustration (event doesnt happen)
- henry hired flat to watch coronation procession from window
- coronation postponed due to kings illness
- henry refused to pay krell as didnt get to see coronation
- sole purpose of contract deemed to be destroyed
- contract became frustrated
- henry didn’t have to pay for hire
