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Law Paper 3 - Contract Law + Nature of Law > Discharge of Contract > Flashcards

Discharge of Contract Flashcards

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1
Q

What is the case for the strict rule of performance?

A

Cutter vs Powell

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2
Q

What is the POL from Cutter vs Powell?

A

Husband didn’t complete all his obligations under the contract so wife couldn’t claim any wages

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3
Q

What are the cases saying all parts of a contract have to be fully completed for it to be valid?

A
  1. Arcos Ltd vs E A Ronaasen & Son
  2. Re Moore & Co vs Landauer & Co
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4
Q

What is the POL from Arcos Ltd vs E A Ronaasen & Son?

A

Staves were a sixteenth of an inch narrower than described so he was right to repudiate under the strict rule of performance

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5
Q

What is the POL from Re Moore & Co vs Landauer & Co

A

The total number of tins were correct but came in packages of less units than described - stated that the strict rule stretched to packaging and the buyer was right to repudiate the contract under the strict rule of performance

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6
Q

What is the POL from Reardon Smith Line Ltd vs Hansen-Tangen?

A

The judges would not accept a repudiation of obligations where the term was a mere technicality describing the shipyard and job number

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7
Q

What are the ways you can avoid the strict rule of performance?

A
  1. Divisible contracts
  2. Acceptance of part performance
  3. Substantial performance
    4.Prevention of performance
  4. Tender of performance
  5. Time of performance
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8
Q

What is the case for divisible contracts?

A

Taylor vs Webb

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9
Q

What is the POL from Taylor vs Webb?

A

The contract had divisible obligations, to lease the premises, and to repair and maintain. The contract was not entire and the tenant could not legitimately refuse payment

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10
Q

What is the case for acceptance of part performance?

A

Sumpter vs Hedges

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11
Q

What is the POL from Sumpter vs Hedges?

A

The landowner had no choice but to complete the work as the alternative was to leave the partly completed buildings as an eyesore on his land

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12
Q

What are the cases for substantial performance?

A

Dakin & Co vs Lee
Hoenig vs Isaacs
Bolton vs Mahadera

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13
Q

What is the POL from Dakin & Co vs Lee?

A

The builder was able to sue for the price of the work less an amount representing the value of the defective work

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14
Q

What is the POL from Hoenig vs Isaacs?

A

A decorator was hired to decorate and furnish a flat for £750. He finished the work. The owner moved in and paid £400 by installments. Then, because of defects to a bookcase and a wardrobe that would cost £55 to put right, he refused to pay the remaining £350.

Held - The contract was substantially performed and the balance was payable less the amount for the defects of his work

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15
Q

What is the POL from Bolton vs Mahadera?

A

There was not substantial performance as there were £174 worth of defects in a system, costing £560 (31%)

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16
Q

What is the case for prevention of performance?

A

Planche vs Colburn

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17
Q

What is the POL from Planche vs Colburn?

A

The author was prevented from completing the work due to the publisher abandoning the series. He was entitled to recover a fee for his wasted work

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18
Q

What is the case for tender of performance?

A

Startup vs Macdonald

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19
Q

What is the POL from Startup vs Macdonald?

A

The seller delivered at 8:30pm on 31st March which was a Saturday, and the buyer refused to accept the delivery. The seller was able to recover damages.

May be different under the Sale of Goods Act 1979 since delivery should be at a ‘reasonable hour’

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20
Q

What does time have to be in order to be able to repudiate the contract?

A

‘Of the essence’

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21
Q

What 3 principle occasions suggest that time is ‘of the essence’?

A
  1. Where the parties have made an express stipulation in the contract that time is of the essence
  2. Where the surrounding circumstances show that time of performance is critical, as would be the case with delivery of perishable goods.
  3. Where one party has already failed to perform his obligations under the contract. In this case the other party is able to confirm that unless performance is completed within a stated period, repudiation will occur
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22
Q

What is the doctrine of frustration?

A

Where there is a factor preventing performance that is beyond the control of either party to the contract

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23
Q

What is the case for the strict rule of fustration?

A

Paradine vs Jane

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24
Q

What is the POL from Paradine vs Jane?

A

If he had wished to reduce his liability to take account of intervening events preventing his performance, then he should have made express provision for that in the lease

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25
Q

What are the cases for the development of the doctrine of frustration?

A

Taylor vs Caldwell
Davis Contractors Ltd vs Fareham UDC
CTI Group vs Transclear SA

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26
Q

What is the POL from Taylor vs Caldwell?

A

The commercial purpose of the contract had ceased to exist, so performance was impossible and both sides were excused of further performance

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27
Q

What is the POL from Davis Contractors Ltd vs Fareham UDC?

A

The contractual obligation was impossible to perform because the circumstances in which performance is called for was radically different to that when the contract was taken out

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28
Q

What is the POL from CTI Group vs Transclear SA?

A

The fact that the supplier had chosen not to supply the cement making it impossible for the seller to perform the contract was not sufficient on its own to frustrate the contract

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29
Q

What are the 3 types of frustrating event?

A
  1. Where the intervening event makes performance impossible
  2. Where performance becomes illegal
  3. Where the contract becomes commercially sterilised
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30
Q

What are the cases from impossibility?

A

Taylor vs Caldwell
Jackson vs Union Marine Insurance Co
Robinson vs Davidson
Condor vs The Baron Knights
Morgan vs Manser
Pioneer Shipping vs BTP Tioxide
Metropolitan Water Board vs Dick Kerr & Co

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31
Q

What is the POL from Taylor vs Caldwell (Impossibility)?

A

Destruction of the music hall was the cause of the impossibility and the frustration

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32
Q

What is the POL from Jackson vs Union Marine Insurance Co?

A

The court accepted there was an implied term that the ship should be available for loading in a reasonable time, and the long delay was a frustration of the contract

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33
Q

What is the POL from Robinson vs Davidson?

A

It was held that the contract was conditional on the woman being well enough to perform and her illness excused her - the contract was fustrated

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34
Q

What is the POL from Condor vs The Baron Knights?

A

Held that the contract was frustrated since it was necessary to have a stand-in musician in case he fell ill

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35
Q

What is the POL from Morgan vs Manser?

A

His absence due to being conscripted to war rendered the purpose of the contract undermined and both parties were excused performance

36
Q

What is the POL from Pioneer Shipping Ltd vs BTP Tioxide Ltd?

A

Anticipated 7 voyages for a ship but due to strikes at the port this was reduced to 2 and the contract was held as frustrated

37
Q

What is the POL from Metropolitan Water Board vs Dick Kerr & Co?

A

The contract was frustrated at the time of the government order

38
Q

What are the cases for subsequent illegality?

A

Denny Mott & Dickson vs James B Fraser & Co
Re Shipton Anderson Vs Co and Harrison Bros & Co

39
Q

What is the POL from Denny Mott & Dickson vs James B Fraser & Co?

A

A contract to import certain goods to an English port would be frustrated if the law was changed so that importing goods of that kind became illegal

40
Q

What is the POL from Re Shipton Anderson vs Co and Harrison Bros & Co?

A

The government requisitioned the cargo and the contract was frustrated

41
Q

What are the cases for a radical change of circumstances?

A

Krell vs Henry
Herne Bay Steamboat Co vs Hatton

42
Q

What is the POL from Krell vs Henry?

A

Watching the coronation procession was the ‘foundation of the contract’; the defendant was relieved further performance

43
Q

What is the POL from Herne Bay Steamboat Co vs Hatton?

A

One purpose had disappeared, but it was still possible to use the boat and see the fleet so the contract was not frustrated

44
Q

In what situations does the doctrine of frustration not apply?

A
  1. Self-induced frustration
  2. Contract is more onerous to perform
  3. Foreseeable risk
  4. Provisions made in the contract for the frustrating event
  5. Absolute undertaking to perform
  6. When performance is possible but more difficult or expensive than originally anticipated
45
Q

What is the case for self-induced frustration?

A

Maritime National Fish vs Ocean Trawlers

46
Q

What is the POL from Maritime National Fish vs Ocean Trawlers?

A

They chose not to use the hired vessel rather than were prevented from doing so, this was self-induced frustration

47
Q

What does a contract becoming more onerous to perform mean?

A

There is no release from obligations merely because the contract has become less beneficial because of the intervening event

48
Q

What is the case for the contract being more onerous to perform?

A

Davis Contractors vs Fareham UDC

49
Q

What is the POL from Davis Contractors vs Fareham UDC (Onerous)?

A

The builders being unable to make the same profit was not accepted as justifying a claim of frustration

50
Q

What is the case for foreseeable risk?

A

Amalgamated Investment & Property Co vs John Walker & Sons

51
Q

What is the POL from Amalgamated Investment & Property Co vs John Walker & Sons?

A

Listing from the Department of the Environment was a risk associated with all old buildings, which the developers should have been aware about as the risk was foreseeable

52
Q

What is the case for when there are provisions made in the contract for the frustrating event?

A

Fibrosa Spolka Akoyina vs Fairbarn Lawson Combe Barbour

53
Q

What is the POL from Fibrosa Spolka Akoyina vs Fairbarn Lawson Combe Barbour?

A

The contract contained a ‘war clause’ but it only anticipated delays in delivery not the effects of invasion

54
Q

What is an absolute undertaking to perform?

A

Performance should occur in any circumstances

55
Q

What is the case for an absolute undertaking to perform?

A

Paradine vs Jane

56
Q

What is the POL from Paradine vs Jane (Undertaking to perform)?

A

He had a contractual duty to pay the rent that was not affected by any intervening events

57
Q

What is the case for when performance is possible but more difficult or expensive than originally anticipated?

A

Tsakiroglou vs Noblee Thorl

58
Q

What is the POL from Tsakiroglou vs Noblee Thorl?

A

It was suggested that an increased expense, no matter how onerous, could never frustrate a contract

59
Q

What is the common law stance on frustration?

A

The parties are released from there obligations from that point on. However, they would still be bound by obligations rising before the frustrating event occurred

60
Q

What is the case for the common law approach on frustration?

A

Chandler vs Webster

61
Q

What is the POL from Chandler vs Webster?

A

The money for a room was paid for in advance, when the coronation of Edward VII was delayed the money was not recoverable as it was paid before the frustrating event occurred

62
Q

What did the House of Lords say within the Fibrosa case to modify this principle?

A

A party could recover payments made prior to a frustrating event, provided that there was a total failure of consideration

63
Q

What is the main act for statutory control of frustration?

A

The Law Reform (Frustrated Contracts) Act 1943

64
Q

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

A
  1. Recover of money paid in advance of a contract
  2. Recovery for work already completed under the contract
  3. Financial reward where a valuable benefit has been conferred
65
Q

Under s 1(2) what happens to money due under the contract?

A

It ceases to be payable

66
Q

What is the ruling on the recovery for work already completed under the contract?

A

The court can reward the party who carried out the work, but it is what they believe to be fair and not was actually incurred in expenses

67
Q

What is the case for s 1(3), financial reward where a valuable benefit has been conferred?

A

BP Exploration Co (Libya) vs Hunt

68
Q

What is the POL from BP Exploration Co (Libya) vs Hunt?

A

Oil was discovered but Libya confiscated it - BP was awarded $35 million by the court, despite spending $87 million already

69
Q

What circumstances does the act not cover?

A
  1. Contracts for the carriage of goods by sea, except time charter parties
  2. Insurance contracts
  3. Perishing of goods under the Sale of Goods Act 1979
70
Q

How can a breach of contract occur?

A
  1. By failing to perform obligations either entirely or not up to the standard required
  2. Repudiating without justification
71
Q

What are the different types of breach?

A
  1. Breach of an ordinary term
  2. Breach of a condition
  3. Anticipatory breach
72
Q

What is a breach of an ordinary term?

A

The character of a term is unimportant, regardless of whether it is a condition or a warranty, if a term is breached there is always an option for damages available

73
Q

What is the case for a breach of condition?

A

Schuler AG vs Wickman Machine Tools Sales

74
Q

What is the POL from Schuler AG vs Wickman Machine Tools Sales?

A

They had already accepted numerous similar breaches and the term did not go to the root of the contract so it was not a breach of condition

75
Q

What is an anticipatory breach?

A

Where one party gives notice either expressly or implied by conduct that he will not complete his obligations

76
Q

What is the case for an anticipatory breach?

A

Hochster vs De La Tour

77
Q

What is the POL from Hochster vs De La Tour?

A

There was no requirement that the victim of a breach of contract should wait until the actual breach to sue

78
Q

What are the effects of a breach of an ordinary term?

A

If the term is a warranty or a unserious innominate term then damages is the only remedy available

79
Q

What are the effects of a breach of a condition?

A

If the term is a condition or a serious innominate term then the victim can:

  1. Sue for damages
  2. Repudiate his own obligations
  3. Both
80
Q

What is the case for the effect of a breach of condition?

A

Cehave NV vs Bremer Handelsgesellschaft mbH (The Hansa Nord)

81
Q

What is the POL from Cehave NV vs Bremer Handelsgesellschaft mbH (The Hansa Nord)?

A

The effects of the breach were not sufficiently serious to justify repudiation - meaning the party who repudiated the contract is now in breach

82
Q

What is the case for the intention of the parties?

A

Rice vs Great Yarmouth Borough Council

83
Q

What is the POL from Rice vs Great Yarmouth Borough Council?

A

The Court of Appeal interpreted the term as giving the party an unacceptable right to repudiate for breach of any term, even of no significance despite what the parties agreed at the time of contracting

84
Q

What is the case for an anticipatory breach (effect)?

A

Frost vs Knight

85
Q

What is the POL from Frost vs Knight?

A

The claimant sued successfully for a breach of promise before the breach actually occurred

86
Q

What is the POL from Avery vs Bowden?

A

Avery waited in the hope that the contract would be completed despite there being an anticipatory breach and he could sue if the contract ended up not being completed eventually

Law Paper 3 - Contract Law + Nature of Law (9 decks)

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