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Law paper 3- contract > Discharge > Flashcards

Discharge Flashcards

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1
Q

What is discharge?

A

The contract can be discharged if the parties have not fulfilled their obligations as agreed

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2
Q

What are the 3 types of discharge?

A

Performance
Frustration
Breach

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3
Q

What is the strict rule for discharge by performance?

A

The performance must be complete and exact

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4
Q

What is the case for the strict rule of performance?

A

Cutter v Powell

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5
Q

What are the 4 ways discharge by performance can be avoided?

A

Prevention on full performance
Acceptance of part performance
Divisible contracts
Substantial performance

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6
Q

What is prevention of full performance?

A

One party prevents the other from carrying out the contract

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7
Q

What is the case for prevention of full performance?

A

Planche v Colburn

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8
Q

What is acceptance of part performance?

A

On party doesn’t have to complete the entire contract as the other party has consented

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9
Q

What is the case for acceptance of part performance?

A

Sumpter v Hedges

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10
Q

What are divisible contracts?

A

When there are separate parts of the contract and non completion of one part doesn’t breach the entire contract

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11
Q

What is the case for divisible contracts?

A

Richie v Atkinson

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12
Q

What is substantial performance?

A

A part has been done substantially (done enough)

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13
Q

What is the case for substantial performance?

A

Darkin v Lee- not substantial

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14
Q

When is time a condition for discharge by performance?

A

Expressly stated
Critical for contract
Not on time and party has insisted on another date

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15
Q

What is the case for time in performance?

A

Union Eagle v Golden

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16
Q

What are the 4 remedies for discharge by performance?

A

Quantum meruit- can claim for work
Repudiation
Specific performance
Damages

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17
Q

What is the strict rule for frustration?

A

Bound to perform even if an intervening act made it impossible

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18
Q

What s the case for the strict rule for frustration?

A

Paradine v Jane

19
Q

What is the current rule for frustration?

A

If there is an unforeseeable event which means the contract can no longer be performed neither party has to fulfil

20
Q

What are the 3 elements of frustration?

A

Impossible to complete
Illegal to perform
Radical change

21
Q

What can frustration not be applied?

A

Self induced
Less profitable or more difficult to complete
Foreseeable risk/ mentioned in contract

22
Q

What are the 3 ways a contract can be impossible to complete?

A

Subject matter destroyed
Subject matter unavailable
Person unavailable

23
Q

What is the case for subject matter destroyed?

A

Taylor v Caldwell

24
Q

What is the case for subject matter unavailable?

A

Jackson v Union Marine

25
Q

What is the case for person unavailable?

A

Condor v Baron Knights

26
Q

What does it mean if an obligation is not illegal to perform? (frustration)

A

Changes in the law make the contract illegal to perform

27
Q

What is the case for illegal to perform?

A

Denny, Mott, Dickson v James

28
Q

What does it man if there is a radical change?

A

If the main purpose is based on an event that cannot take place= frustrated

29
Q

What is the case for radical change?

A

Krell v Henry

30
Q

What does it mean by self induced?

A

The party is in control

31
Q

What is the case for self induced?

A

Maritime v Ocean Trawlers

32
Q

What does it mean by less profitable or more difficult to complete?

A

Not frustrated if they find fulfil because it was more difficult or less profitable

33
Q

What is the case for less profitable?

A

Paris v Fareham

34
Q

What is the case for foreseeable risk?

A

Amalgamated v John Walker

35
Q

What are the 2 types of breach?

A

Actual
Anticipatory

36
Q

What is actual breach?

A

Has already happened

37
Q

What is anticipatory breach?

A

It is going to happen

38
Q

What are the 3 options for actual breach?

A

Continue and sue
Repudiate
Repudiate and sue

39
Q

What is the case for actual breach?

A

Rice v Great Yarmouth

40
Q

What are the remedies for discharge by frustration?

A

Common law
Statute

41
Q

What are the remedies under common law?

A

Contract automatically terminated and future obligations don’t have to be fulfilled
Anything done or paid is lost- Chandler v Webster

42
Q

What are the remedies under statute?

A

Covers what happens after an event occurs

43
Q

What act is the remedies under statute?

A

Law reform (frustrated contracts) act 1943

44
Q

What does the Law Reform act 1943 say?

A

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

Law paper 3- contract (15 decks)

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