Discharge Flashcards
What is discharge?
The contract can be discharged if the parties have not fulfilled their obligations as agreed
What are the 3 types of discharge?
Performance
Frustration
Breach
What is the strict rule for discharge by performance?
The performance must be complete and exact
What is the case for the strict rule of performance?
Cutter v Powell
What are the 4 ways discharge by performance can be avoided?
Prevention on full performance
Acceptance of part performance
Divisible contracts
Substantial performance
What is prevention of full performance?
One party prevents the other from carrying out the contract
What is the case for prevention of full performance?
Planche v Colburn
What is acceptance of part performance?
On party doesn’t have to complete the entire contract as the other party has consented
What is the case for acceptance of part performance?
Sumpter v Hedges
What are divisible contracts?
When there are separate parts of the contract and non completion of one part doesn’t breach the entire contract
What is the case for divisible contracts?
Richie v Atkinson
What is substantial performance?
A part has been done substantially (done enough)
What is the case for substantial performance?
Darkin v Lee- not substantial
When is time a condition for discharge by performance?
Expressly stated
Critical for contract
Not on time and party has insisted on another date
What is the case for time in performance?
Union Eagle v Golden
What are the 4 remedies for discharge by performance?
Quantum meruit- can claim for work
Repudiation
Specific performance
Damages
What is the strict rule for frustration?
Bound to perform even if an intervening act made it impossible
What s the case for the strict rule for frustration?
Paradine v Jane
What is the current rule for frustration?
If there is an unforeseeable event which means the contract can no longer be performed neither party has to fulfil
What are the 3 elements of frustration?
Impossible to complete
Illegal to perform
Radical change
What can frustration not be applied?
Self induced
Less profitable or more difficult to complete
Foreseeable risk/ mentioned in contract
What are the 3 ways a contract can be impossible to complete?
Subject matter destroyed
Subject matter unavailable
Person unavailable
What is the case for subject matter destroyed?
Taylor v Caldwell
What is the case for subject matter unavailable?
Jackson v Union Marine
What is the case for person unavailable?
Condor v Baron Knights
What does it mean if an obligation is not illegal to perform? (frustration)
Changes in the law make the contract illegal to perform
What is the case for illegal to perform?
Denny, Mott, Dickson v James
What does it man if there is a radical change?
If the main purpose is based on an event that cannot take place= frustrated
What is the case for radical change?
Krell v Henry
What does it mean by self induced?
The party is in control
What is the case for self induced?
Maritime v Ocean Trawlers
What does it mean by less profitable or more difficult to complete?
Not frustrated if they find fulfil because it was more difficult or less profitable
What is the case for less profitable?
Paris v Fareham
What is the case for foreseeable risk?
Amalgamated v John Walker
What are the 2 types of breach?
Actual
Anticipatory
What is actual breach?
Has already happened
What is anticipatory breach?
It is going to happen
What are the 3 options for actual breach?
Continue and sue
Repudiate
Repudiate and sue
What is the case for actual breach?
Rice v Great Yarmouth
What are the remedies for discharge by frustration?
Common law
Statute
What are the remedies under common law?
Contract automatically terminated and future obligations don’t have to be fulfilled
Anything done or paid is lost- Chandler v Webster
What are the remedies under statute?
Covers what happens after an event occurs
What act is the remedies under statute?
Law reform (frustrated contracts) act 1943
What does the Law Reform act 1943 say?
S.1(2):
Money already paid is recoverable
Any money that has to be paid no longer has to
Oder compensation to be paid
S.1(3):
Compensation ordered for any valuable benefit one party may acquire