Discharge Flashcards
What is discharge
The point at which a contract comes to an end
What are the 3 ways that a contract may be discharged
Performance, breach and frustration
What is performance
Both parties have done what they agreed in the contract, when they have fulfilled their acts they can end it
What circumstances has the harshness of performance lessened in
a. Tender of performance
b. Severable contracts.
c. Substantial performance
d. Acceptance of partial performance
e. Delayed performance
What case contains the 5 circumstances of performance
Cutter v Powell
What is tender performance
You can claim for the work that you have done, quantum meruit- as much as it is worth
What case do you use for tender performance
Planche v Colburn
What is a severable contract
If a contract has separate parts, non completion of one part does not breach the contract and you can receive part payment may still be made
What case do you use for severable contracts
Ritchie v Atkinson
What is substantial performance
When some work is done well and other bits not so well, often ends in a price reduction for the claimant
What case would you use for substantial performance
Darcin and Co v Lee
What case states the courts will reach a fair and just outcome for substantial contracts
Young v Thames properties
What is part performance
You gain the money for the thing you have done before being told you cannot continue
Who must part payment be discussed by
Both parties and it has to be free from undue pressure, will be invalid if one party has no option but to take it
What case do you use for part performance
Sumpter v Hedges
What is delayed performance
What are the 3 circumstances in which time will be a condition
■ Parties express that ‘time is of the essence’
■ Time of completion is critical (in the circumstances)
■ One part hasn’t completed on time and other party has insisted on another completion date
What case do you use for delayed performance
Charles Rickards v Oppenheim
What is frustration
Where a party to a contract is prevented from keeping their promise because of an unforeseeable, intervening event out of the control of the parties
What is the old rule of frustration
A party was bound to perform their contractual obligation even if an
intervening act made it impossible
What case do you use for the old rule for frustration
Paradine v Jane
What is the new development for frustration
If a party to a contract was prevented from keeping the promise because of an
unforeseeable, intervening event, they would not be liable for a breach of contract.
What are the grounds for claiming frustration
Impossibility, illegality, radical change in circumstance, leases and employment contracts
What is impossibility
It is no longer possible to fulfil the contract under any means
What case do you use for impossibility
Taylor v Caldwell
What is illegality
A change to the law that makes imports or certain goods and certain acts illegal
What case do you use for illegality
Denny, Matt and Dickson v James B Fraser
What is radical change in circumstance in frustration
The event was the main purpose of the contract but now there is no event
What case do you use for radical change in circumstance
Krell v Henry
What is meant by leases in frustration
Permanent access to the building is obstructed
What case do you use for leases
National carriers v Panolpina
What is employment contracts as frustration
Illness can be a frustrated event
What case do you use for employment contracts
Robinson v Davidson
When do courts have limited frustration
■ Self induced frustration
■ The contract becoming less profitable
■ The event being a foreseeable risk or the event was mentioned in the contract
What is meant by self induced frustration
If they placed themselves in that position
What case do you use for self induced frustration
Maritime national fish v Ocean trawlers
What is meant by less profitable in frustration
You cannot claim if during the time in which the contract is in play, the cost has gone up and your profit has decreased
What case do you use for less profitable
Davis contractors v Fareham urban district council
What is meant by foreseeable risk in frustration
If the risk is likely to happen then frustration should not occur
What case do you use for foreseeable risk
Property v John Walker and Sons
What is force Majeure
A clause often found in commercial contracts, it excludes liability for the parties for delays in performance or the non performance if there are extraordinary events
What sets out the remedies for frustrated contracts
Law Reform (Frustrated Contracts) Act 1943
What does s1(2) Law Reform (Frustrated
Contracts) Act 1943 state
Money paid before the event (deposits) occurred can be claimed back
What does s1(3) Law Reform (Frustrated
Contracts) Act 1943 state
If one party has obtained a valuable benefit from the contract before the frustrating event, the court may order them to pay a just sum
What does s1(4) Law Reform (Frustrated
Contracts) Act 1943 state
In estimating the expenses incurred by any party to the contract, the court should consider- over head expenses and any work/ services performed personally by a party to the contract
