Discharge and Variation of Contract

Question 1

A contract can be discharged by _________ of the parties, but __________ is required to support the discharge

Answer 1

agreement, consideration

Question 2

If each party still have _____________ _________, a discharge agreement is enforceable. An agreement not to demand the performance is _________

Answer 2

unperformed obligations, consideration

Question 3

If one party has fully performed, the agreement to discharge is ___ __________, unless the non-performing party gives _________ consideration

Answer 3

not enforceable, different

Question 4

An agreement to discharge where one party has fully performed can also be made by…

Answer 4

Deed

Question 5

A party who waives their right to enforce the other party’s obligation has a right to _______ their original obligation by giving _________ ______, unless the other party ________ relied on the waiver

Answer 5

reinstate, reasonable notice, detrimentally

Question 6

Substantial performance discharges the contract, but it is also a breach of ________, giving the nonbreaching party a right to ________

Answer 6

warranty, damages

Question 7

Does a failure to substantially perform one part of a divisible contract prevent enforcement of the other parts?

Answer 7

No

Question 8

An anticipatory breach of contract gives the innocent party the right to _________ the contract immediately, or to _____ __ with their obligations under the contract and then sue.

However to carry on with the contract, the innocent party must have a _________ ________ in doing so.

Answer 8

terminate, carry on

legitimate interest

Question 9

If an anticipatory breach goes to a _________, the nonbreaching party has an ________ right to sue for ________

Answer 9

condition, immediate, damages

Question 10

If the non-breaching party chooses to _____ after an anticipatory breach and something happens before performance is due that would ________ the contract (e.g. frustration), they will lose the right to sue for _____

Answer 10

wait, discharge, damages

Question 11

What is frustration of a contract?

(clue: it can render performance of a contract to 3 things)

Answer 11

The unforeseen termination of a contract as a result of an event that either renders its performance:

1. Impossible
2. Illegal
3. Prevents its main purpose from being achieved.

Question 12

For radically different performance to be a ground for frustration, it must be ___________ to the contract and the supervening event that makes performance radically different must not have been ________ by the parties when they made their contract

Answer 12

fundamental, considered

Question 13

Under LRFCA 1943, Generally, if a contract is frustrated and the parties are discharged from further performance:

1. All sums paid in respect of performance before discharge are ________; and
2. All sums payable before discharge _______ to be payable

Answer 13

recoverable, cease

Question 14

Under LRFCA 1943, If a party incurred _______ before discharge under frustration, the court may allow them to retain ______ ____ as reimbursement for them

Answer 14

expenses, sufficient sums

Question 15

Under LRFCA 1943, If a party obtained a valuable __-_______ benefit before discharge under frustration, the party who benefitted may have to ___ __ __

Answer 15

non-monetary, pay for it

Question 16

Which 3 types of contracts do The LRFCA 1943 not apply to?

Answer 16

1. Insurance contracts
2. Charterparties
3. Contracts which include a force majeure clause

Question 17

When will frustration not apply to a contract? (3 situations)

Answer 17

1. More expensive or difficult to perform
2. Self-induced frustration
3. Foreseen events