Discharge of Contract

Question 1

what is a discharge of contract?

Answer 1

discharge of contract means to end the contract, this doesn’t always mean it is problematic, the usual way that a contract is discharged is through performance- both parties doing what they promised.

Question 2

what is discharged through breach?

Answer 2

if parties have not fulfilled their promise a contract may be discharged through breach.

Question 3

what is discharge by performance?

Answer 3

for discharge by performance there can be issues eg. if only part of promise is carried out, if one party is unable to fulfil their promise. (cases on next card set)

Question 4

time?

Answer 4

some contracts may specifically a time for the contract to be performed (and so discharged) by eg. buying a wedding dress that must be ready by a specified date. the courts may uphold this term when:
the parties have expressly stated that time is a critical part of performance in the contract.
in the circumstance, time for completion of the contract is critical.
one party has failed to perform on time and the other has insisted on a new date for completion.

Question 5

Charles Rickards v Opponheim

Answer 5

facts: both parties entered into a contract with different understandings of a crucial term, leading to a mutual mistake.
held: a contract was unenforceable due to mutual mistake.
principle: a contract can be unenforceable due to mutual mistake if both parties have different understandings of a key term.

Question 6

Union Eagle v Golden Achievement

Answer 6

facts: Union Eagle made a bidding error at an auction. Despite knowing the mistake, Golden Achievement, the auctioneer, accepted the bid.
held: contract voided
principle: a contract can be voided due to unilateral mistake if the other party knew or should have known about the error and it would be unfair to exploit it.