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Contract Law > Discharge Of Contract > Flashcards

Discharge Of Contract Flashcards

1
Q

What is meant by discharge of contract?

A

Ending obligations under the contract, usually when primary obligations have been met

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2
Q

What case contains the strict rule on performance?

A

Cutter v Powell

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3
Q

Cutter v Powell Strict Rule POL

A

Strict/perfect rule should be complete performance of all obligations then the contract is discharged

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4
Q

Cutter v Powell Case

A

Cutter died on voyage. Failed to complete contract so no obligation to pay

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5
Q

Acros Ltd v E A Ronaasen & Son (Quote)

A

Wooden staves sixteenth of an inch narrower than asked

Lord Atkin “a ton does not mean about a ton, or a yard about a yard, if a seller wants a margin he must and in my experience does stipulate for it”
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6
Q

What case applies the strict rule even in an ancillary obligation?

A

ReMoore & Co v Landover & Co

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7
Q

ReMoore & Co v Landover & Co

A

Quantity tins where sent in different to description but total quantity correct - i strict rule applied then packaging is included in description

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8
Q

What does “De minimise non curat léx” mean?

A

“the law does not concern itself with trifles”

Trifles - matters of no value or importance
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9
Q

Reardon Smith Line Ltd v Hansen-Tangen

A

Judge would not accept repudiation where term was mere technicality discrimination shipyard and job number

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10
Q

What are some exceptions to the strict rule? (6)

A
  • Divisible contract
  • Part performance
  • Substantial performance
  • Prevention of performance
  • Tender of performance
  • Time of performance
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11
Q

What is meant by a divisible contract + case?

A

Made up of various parts that can be discharged separately

Taylor v Webb
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12
Q

Taylor v Webb

A

Contract divisible - lease premises - repair and maintain - tenant could not legitimately refuse payment

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13
Q

What is acceptance of part performance + case?

A

Shortfall of delivery or service not carried out fully - only when victim has choice of whether or not to accept

Sumpter v Hedges
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14
Q

Sumpter v Hedges

A

Builder ran out of money unable to complete work. Landowner had no choice but to complete work as otherwise would have had partially complete buildings

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15
Q

What is meant by Substantial Performance + case?

A

Party has done substantially what is required - party can recover amount appropriate to what has been done

Dakin & Co v Lee
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16
Q

Dakin & Co v Lee

A

Builder carried out work but some carried out carelessly - builder able to claim price of work less amount representing value of defective work

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17
Q

Hoenig v Isaacs

A

Decorator decorating flat - work defective - balance was payable less the amount of defects (£55)

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18
Q

Bolton v Mahadeva

A

Electrician hired to install central heating - didn’t work properly not substantial performance £174 worth of defects in system costing £560 (31% defective)

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19
Q

What is meant by prevention of performance + case?

A

One party prevents the other from carrying out obligations - means strict rule can’t apply - party trying to perform may have an action for damages

Planche v Colburn
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20
Q

Planche v Colburn

A

Publisher hired author to write book - publisher abandoned series - writer entitled to recover fee for wasted work

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21
Q

What is meant by tender of performance + case?

A

Party has offered to complete his obligations but other side has unreasonably refused performance

Startup v Macdonald
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22
Q

Startup v Macdonald

A

Delivered at 8:30 pm on a Saturday, buyer refused to accept delivery. Seller able to recover damages ( may have changed since SoG Act 1979 says delivery should be at ‘reasonable hour

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23
Q

What is meant by time of performance?

A

Failure to perform in time would only give action to damages but not repudiation

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24
Q

What three occasions is time considered ‘of the essence’

A
  1. Parties made express stipulation that time is of the essence
  2. Surrounding circumstances show time of performance critical (perishable goods)
  3. Failed to perform, party can confirm unless performance completed within stated period, repudiation will occur
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25
Q

What is meant by discharge by frustration?

A

If there is a factor preventing performance beyond the control of either party

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26
Q

What case contains the old common law on frustration?

A

Paradine v Jane

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27
Q

What is the case of Paradine v Jane?

A

Couldn’t pay rent due to invading army

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28
Q

What has the development of the doctoring of frustration been?

A

In circumstances they are prevented from keeping promise due to unforeseeable event not liable for breach

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29
Q

Taylor v Caldwell?

A

Music hall burnt down both sides excused from further performance

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30
Q

Davi’s Contractors v Fareham?

A

Must not be the fault of either party

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31
Q

CTI Group v Transclear?

A

There was no intervening act not the fault of either party

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32
Q

Jackson v Union Marine?

A

Ship ran aground - delay was frustrating event

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33
Q

Robinson v Davidson?

A

Pianist ill - conditional on women being well - frustrated

34
Q

Condor v The Baron Knights?

A

Can be frustrated if there is risk of unavailability

35
Q

Morgan v Manser?

A

Conscripted to join war excused from performance

36
Q

Pioneer Shipping v BTP Tioxide?

A

Strikes meant vessel used less frustrated

37
Q

Metropolitan water board v Dick Kerr?

A

Frustrated from government order

38
Q

What two cases relate to subsequent illigality?

A

Denny v James B Fraser
Re Shipton Anderson and Harrison Bros

39
Q

Denny v James B Fraser?

A

Importing goods of that kind became illegal frustrated

40
Q

Re Shipton Anderson and Harrison Bros?

A

Government requisitioned cargo due to war frustrated

41
Q

What two cases relate to frustration of commercial venture?

A

Krill v Henry
Horne Bay Steamboat v Hatton

42
Q

Krill v Henry?

A

Booked hotel room to watch kings coronation, cancelled - frustrated

43
Q

Rune Bay Steamboat v Hatton?

A

Hired boat to see kings fleet - one purpose disappeared due to cancellation but still possible to see kings fleet

44
Q

What are the four limit ions to the application of frustration?

A

Self induced frustration
Contract more onerous to perform
Foreseeable risk
Provisions made in contract for frustrating event
Absolute undertaking to perform

45
Q

What case relates to self induced frustration?

A

Maritime National Fish v Ocean Trawlers

46
Q

Maritime National Fish v Ocean Trawlers?

A

Chose not to use hired vessel rather than prevented

47
Q

What two cases relates to Contract more onerous to perform?

A

Tsakiraglou v Noblee Thorl
Davis v Fareham

48
Q

Tsakiraglou v Noblee Thorl?

A

More expensive than anticipated

49
Q

Davis v Fareham?

A

Unable to make same profits - no frustration

50
Q

What case relates to foreseeable risk?

A

Amalgamated investment v John Walker

51
Q

Amalgamated investment v John Walker?

A

Holding listing was risk should have been aware of

52
Q

What case relates to Provisions made in contract for frustrating event?

A

Fibrosis v Fairbairn

53
Q

Fibrosa v Fairbairn?

A

Contract contain ‘war clause’ still frustrated as only anticipated delays not invasion

54
Q

What case relates to absolute undertaking to perform?

A

Paradine v Jane

55
Q

Paradine v Jane?

A

If contract contains undertaking must occur in any circumstances then no frustration

56
Q

What case contains the previous common law on the effects of frustration?

A

Chandler v Webster

57
Q

Chandler v Webster?

A

Despite the frustration no recovery of money

58
Q

How did Fibrosa modify the ruling in Chandler v Webster?

A

Can recover payment made prior to frustration in total failure of consideration - still means one party misses out

59
Q

What act and year cover the effects of frustration?

A

The Law Reform (Frustrated Contracts) Act 1943

60
Q

What does S1(2) state about recovery of money paid in advance?

A

Money paid recoverable - money due under contract ceases to be payable

61
Q

What does S1(2) state about recovery for work already completed?

A

Court has discretion to reward for work carried out under contract

62
Q

What does S1(3) state about financial reward where a valuable benefit has been conferred?

A

Able to recover partial performance if conferred valuable benefit at courts dicretion

63
Q

What is an example of being able to seek financial reward where a valuable benefit has been conferred?

A

BP Exploration v Hunt - BP spent $87million, awarded $35 million by court

64
Q

What does The Law Reform (Frustrated Contracts) Act 1943 exclude?

A

Carriage of goods by sea
Insurance contracts (as about risk)
Perishable goods

65
Q

What are the two ways a breach can occur?

A

Failure to perform obligations
Repudiating without justification

66
Q

What does Lord Diplock sate about breaches?

A

Explains in Photo Prioductions v Securior Transport that if a party fails to perform then breach but will be given secondary obligation such as paying damages

67
Q

What is a breach of an ordinary term and what case relates to it?

A

If term breached term always action damages - Schuler v Wickman

68
Q

Schuler v Wickman?

A

Could rely on term - had already accepted numerous similar breaches - term did not go to route of contract

69
Q

What is an anticipatory breach and what case relates to it?

A

Breach by anticipatory repudiation - Hochester v De La Tour

70
Q

Hochester v De La Tour?

A

Can sue for anticipatory breach

71
Q

What are the effects of a breach?

A

Depends on what has been breached

72
Q

What happens in the breach of an ordinary term?

A

Action for damages - can’t repudiate if breach of warranty

73
Q

What happens in a breach of condition?

A

Can repudiate or action damages

74
Q

What two cases relates to a breach of condition?

A

CeHave v Bremer
Rice v Great Yarmouth BC

75
Q

CeHave v Bremer?

A

Effects of breach not sufficient for repudiation

76
Q

Rice v Great Yarmouth BC?

A

Wrote term that if any obligation breached contract could be ended - unacceptable right to repudiate

77
Q

What five cases relates to to the effects of an anticipatory breach?

A

Frost v Knight
Avery v Bowden
Chiemgover v New Millenium Experience
Fercometal v Mediterranean Shipping
White v Mc Gregor

78
Q

Frost v Knight?

A

Claimant sued successfully for breach - date of actual breach had not occurred

79
Q

Avery v Bowden?

A

Didn’t claim when contract not met as hoped would be completed - war broke out frustrated lost right to claim damages

80
Q

Chiemgover v New Millenium Experience?

A

Couldn’t have fulfilled contract even without termination

81
Q

Fercometal v Mediterranean Shipping?

A

Cannot affirm if breach and other party terminated

82
Q

White v McGregor?

A

Innocent party can continue despite other party’s attempt to cancel

Contract Law (5 decks)

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