Discharge of contract Flashcards
Performance and its remedies
Performance definition: where parties have performed their side of the contract
A01:
- Must be an exact and precise performance of all obligations in the contract, no variations (Cutter v Powell)
- Divisible contracts:
> contract is in various parts thus the incompletion of one part is not breach of the whole contract (Richie v Atkinson)
- Substantial performance:
>If a party has completed a substantial amount of work
they are entitled to be paid (Young v Thames)
- Prevention of full performance:
>one party prevents the other party from completing full performance (Planche v Colburn)
- Acceptance of part performance:
> One part accepts part performance and the implied term is that the other party will only be paid for their part performance (Sumpter v Hedges)
- The time of performance:
>when time is important in the contract it is treated as a condition in the courts (Charles richardson v Oppenhelm)
Remedies:
- Damages
-Quantum m merit basis for part performance
Frustration and its remedies
Frustration definition: where there is a factor which is preventing the performance of the contract and is beyond the control of either party
A01:
-Due to injustice and the strict rule, frustration was made up within the courts to allow exceptions ( Paradine v jane)
- The contract will be frustrated if:
> It is impossible to perform beyond either parties control (Taylor v Caldwell)
> Illegal to perform, the law prevents it being performed e.g. war, covid rules (Anderson v Harrison)
> derived of its commercial use. if the contract is based on a particular event and the event doesnt take place (Krell v Henry)
Frustration is not valid if:
> It is self induced (Maratine v Ocean)
> the contract has become less profitable (Davis v Fareham)
> there is a force majeure
> the is a forseeable risk of frustration (Jhon walker v Sons
Remedies:
- Contract is terminated at the point of frustration
- No recovery of money before the point of frustration
- Law reform (frustrated contracts) Act 1943 states:
> S1(2) deposits are recoverable wherease money already within the contract is not payable
> Compensation to be paid where expenses have been incurred which can be deducted from the amounts payable or paid
> S1(3) Courts may order compensation for any valuable benefit one party may acquire
Breach - Discharge of contracts
Breach definition: total failure to perform or failure to perform in accordance to the terms of the contract
A01:
- When a condition is breached the victim can repudiate or sue for damages (Poussard v spiers and pond)
- When a warranty is broken the victim can sue for compensation only however the contract will continue (Betini v Gyre)
-Actual breach means when one party fails to complete their side of the contracts
- Anticipatory breach is when one party gives notices that the intend not to follow the contract, allowing the victim to claim immediately instead of waiting for the breach but will have to mitigate losses, they may also repudiate (Hotchester v De LA Tour)
Remedies:
- Anticipatory Breach:
> claim damages immediately
> repudiate
- Condition:
> damages
> repudiate
-Warranty:
> damages (contact continues)
Breach - Discharge of contracts
Breach definition: total failure to perform or failure to perform in accordance to the terms of the contract
A01:
- When a condition is breached the victim can repudiate or sue for damages (Poussard v spiers and pond)
- When a warranty is broken the victim can sue for compensation only however the contract will continue (Betini v Gyre)
-Actual breach means when one party fails to complete their side of the contracts
- Anticipatory breach is when one party gives notices that the intend not to follow the contract, allowing the victim to claim immediately instead of waiting for the breach but will have to mitigate losses, they may also repudiate (Hotchester v De LA Tour)
Remedies:
- Anticipatory Breach:
> claim damages immediately
> repudiate
- Condition:
> damages
> repudiate
-Warranty:
> damages (contact continues)
