contractual remedies Flashcards
discharge of a contract by agreement
Has one party completed all obligations under a contract.
NO (both parties have obligations outstanding) = bilateral discharge: both parties release each other from obligations under the contract.
YES = unilateral discharge: party wishing to be released must provide consideration, accord and satisfaction.
Discharge of a contract by performance
Performance must be precisely and exactly what is promised under the contract.
Exceptions:
Substantial performance.
Divisible contracts.
Prevention of completion by the other party.
Acceptance of partial performance by the other party.
discharge of a contract by frustration
where a contract becomes impossible or illegal to perform after it has been made.
reasons for discharge by frustration
The subject matter no longer exists through no fault of either party.
frustrating events
Destruction of Subject matter.
Government intervention.
Non- occurrence of event central to the purpose of a contract.
consequences of frustration
Law reform act 1943:
Money paid is recoverable.
Money due to be paid ceases to be due.
Court may order parties to retain or recover expenses before the frustrating event.
Any valuable benefit received by on party may have to be paid for.
Subsequent illegality
Personal incapacity from one of the parties.
discharge of a contract by breach of the contract
Where a party prior to performance states he will not fulfil his contractual obligations. (anticipatory breach).
Where a party fails to complete his contractual obligations.
Where a party performs his contractual obligations in a defective manner.
Effects of a breach of contract
Party not in breach can seek damages.
If the breach is fundamental a party may repudiate contract alongside looking of damages.
Damages
Aim to put the innocent party in the position he would have been in if the contract had been performed.
Remoteness of damages
Consider how far liability of the other party extends.
Hadley v Baxendale 1584
For losses that arise naturally as a normal consequence of the breach of contract. for losses which both parties may have reasonably contemplated when the contract was made as being a probate result of its breach.
Other remedies
Action for agreed contract price.
Quantum merit (as much as he has earned)
Specific performance.
Injunction.
Court orders: injunction and specific performance.
As equitable remedies they will only be granted at the courts discretion if it is fair in all the circumstances of the case.
Injunction - a court order preventing a person carrying out or ceasing an action.
Specific performance - directs a party in breach of a contract perform his obligations.
Courts will not grant specific performance if damages would be adequate remedy where the court cannot supervise the performance and if the party seeking the performance has acted unfairly.
