Discharge Of Contract Flashcards by Oliver Wilson

What is meant by discharge of contract?

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

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What case contains the strict rule on performance?

Cutter v Powell

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Cutter v Powell Strict Rule POL

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

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Cutter v Powell Case

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

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Acros Ltd v E A Ronaasen & Son (Quote)

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

ReMoore & Co v Landover & Co

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ReMoore & Co v Landover & Co

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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What does “De minimise non curat léx” mean?

“the law does not concern itself with trifles”

Trifles - matters of no value or importance

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Reardon Smith Line Ltd v Hansen-Tangen

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

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

Divisible contract
Part performance
Substantial performance
Prevention of performance
Tender of performance
Time of performance

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What is meant by a divisible contract + case?

Made up of various parts that can be discharged separately

Taylor v Webb

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Taylor v Webb

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

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What is acceptance of part performance + case?

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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Sumpter v Hedges

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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What is meant by Substantial Performance + case?

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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Dakin & Co v Lee

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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Hoenig v Isaacs

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

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Bolton v Mahadeva

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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What is meant by prevention of performance + case?

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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Planche v Colburn

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

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What is meant by tender of performance + case?

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

Startup v Macdonald

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Startup v Macdonald

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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What is meant by time of performance?

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

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What three occasions is time considered ‘of the essence’

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

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What is meant by discharge by frustration?

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

What case contains the old common law on frustration?

Paradine v Jane

What is the case of Paradine v Jane?

Couldn’t pay rent due to invading army

What has the development of the doctoring of frustration been?

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

Taylor v Caldwell?

Music hall burnt down both sides excused from further performance

Davi’s Contractors v Fareham?

Must not be the fault of either party

CTI Group v Transclear?

There was no intervening act not the fault of either party

Jackson v Union Marine?

Ship ran aground - delay was frustrating event

Robinson v Davidson?

Pianist ill - conditional on women being well - frustrated

Condor v The Baron Knights?

Can be frustrated if there is risk of unavailability

Morgan v Manser?

Conscripted to join war excused from performance

Pioneer Shipping v BTP Tioxide?

Strikes meant vessel used less frustrated

Metropolitan water board v Dick Kerr?

Frustrated from government order

What two cases relate to subsequent illigality?

Denny v James B Fraser Re Shipton Anderson and Harrison Bros

Denny v James B Fraser?

Importing goods of that kind became illegal frustrated

Re Shipton Anderson and Harrison Bros?

Government requisitioned cargo due to war frustrated

What two cases relate to frustration of commercial venture?

Krill v Henry Horne Bay Steamboat v Hatton

Krill v Henry?

Booked hotel room to watch kings coronation, cancelled - frustrated

Rune Bay Steamboat v Hatton?

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

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

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

What case relates to self induced frustration?

Maritime National Fish v Ocean Trawlers

Maritime National Fish v Ocean Trawlers?

Chose not to use hired vessel rather than prevented

What two cases relates to Contract more onerous to perform?

Tsakiraglou v Noblee Thorl Davis v Fareham

Tsakiraglou v Noblee Thorl?

More expensive than anticipated

Davis v Fareham?

Unable to make same profits - no frustration

What case relates to foreseeable risk?

Amalgamated investment v John Walker

Amalgamated investment v John Walker?

Holding listing was risk should have been aware of

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

Fibrosis v Fairbairn

Fibrosa v Fairbairn?

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

What case relates to absolute undertaking to perform?

Paradine v Jane

Paradine v Jane?

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

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

Chandler v Webster

Chandler v Webster?

Despite the frustration no recovery of money

How did Fibrosa modify the ruling in Chandler v Webster?

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

What act and year cover the effects of frustration?

The Law Reform (Frustrated Contracts) Act 1943

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

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

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

Court has discretion to reward for work carried out under contract

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

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

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

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

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

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

What are the two ways a breach can occur?

Failure to perform obligations Repudiating without justification

What does Lord Diplock sate about breaches?

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

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

If term breached term always action damages - Schuler v Wickman

Schuler v Wickman?

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

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

Breach by anticipatory repudiation - Hochester v De La Tour

Hochester v De La Tour?

Can sue for anticipatory breach

What are the effects of a breach?

Depends on what has been breached

What happens in the breach of an ordinary term?

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

What happens in a breach of condition?

Can repudiate or action damages

What two cases relates to a breach of condition?

CeHave v Bremer Rice v Great Yarmouth BC

CeHave v Bremer?

Effects of breach not sufficient for repudiation

Rice v Great Yarmouth BC?

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

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

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

Frost v Knight?

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

Avery v Bowden?

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

Chiemgover v New Millenium Experience?

Couldn’t have fulfilled contract even without termination

Fercometal v Mediterranean Shipping?

Cannot affirm if breach and other party terminated

White v McGregor?

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