Discharge

Question 1

contract can be discharged by performance but what other ways?

Answer 1

discharge by breach
discharge by frustration

Question 2

what is discharge by breach?

Answer 2

discharge by breach can occur in an actual breach or in anticipatory breach (when notice is given that one party will not fulfil their end of the contract)

Question 3

what happens in a discharge by breach?

Answer 3

for an actual breach a party has failed to perform their obligations, they may then be sued for breach of contract. sometimes both parties may be in breach.
the victim will be entitled to claim for damages.

Question 4

what does discharge by breach depend on?

Answer 4

ending or terminating the contract will depend on the type of term that has been breached eg. it’s a crucial part of the contract or is it a smaller term such as a warranty.

Question 5

when does an actual breach of contract occur?

Answer 5

-a party renunciates their liabilities- eg. doesn’t pay by a certain date.
-a party has made it impossible for themselves to complete their obligations- eg. closing their business for holidays and being unable to carry out appointments.
-total or partial failure of performance- eg. not delivering goods, or delivering faulty goods.

Question 6

rights

Answer 6

warranty or innominate term is breached- party can claim for damages.
condition is breached- party can sue for damage and/or repudiate the contract.

Question 7

repudiate

Answer 7

terminate the contract, innocent party does not have to fulfil their obligations.

Question 8

what is anticipatory breach?

Answer 8

anticipatory breach occurs when one party gives notice in advance that they will not be performing or completing the contract. the innocent party has a choice:
-sue immediately for breach of a condition, or
-wait the time agreed for performance and sue if performance and sue if performance does not take place.
(they can treat the contract as repudiated immediately and/or claim for damages).

Question 9

repudiate definition

Answer 9

to reject or end the contract

Question 10

recission

Answer 10

equitable remedy to place parties in pre-contractual positions.

Question 11

restitution

Answer 11

the act of returning property to enable parties to go to pre-contractual positions.

Question 12

Hochster v de la Tour (anticipatory breach)

Answer 12

Hochster agreed to work as a courier for a tour company and was due to start in June, in May they communicated they no longer required his services. he was entitled to sue immediately and didnt have to wait for an actual breach in June, as there was an anticipatory breach in May.
principle: anticipatory breach can be communicated expressly in words, or also by conduct, either way the innocent party can treat the contract as repudiated (at an end)

Question 13

remedies for anticipatory breach

Answer 13

-V may sue for damages immediately, this would put them in the same position had the contract been completed. must take reasonable steps to mitigate losses
-may decide to wait for actual breach, damages would be assessed at this point.
-can repudiate (end) contract, this frees

Question 14

remedies for actual breach

Answer 14

breach of condition: V can claim damages and/or repudiation. damages calculated again to put V back in position had the contract been completed.
-breach of warranty: claim limited to damages