Discharge of contract Flashcards
What is discharge of contract?
When a contract comes to an end, usually by performance but could be by breach or frustration
What is a divisible contract?
Where the elements to a contract can be divided into individual segments (Ritchie v Atkinson)
substantial performance
when a party has done mostly what was required under the contract, there must be payment of the amount appropriate to what has been done. - Quantum Meruit.
Prevention of full performance
If a party prevents the innocent party from carrying out their side, the innocent party can claim to be paid on the QM basis (Plance v Colburn)
Acceptance of part performance
where it is agreed the other party need not fulfill their contract QM applies, but the acceptance just be a form of specific acknowledgement that the defrauding party is entitled to be paid so far. (Sumpter v Hughes)
The effects of time to performance?
- THe partiess have expressley stated that time if of the essence
- in the circumstance time for completion is critical
- one party has failed to perform on time and the other has insisted of a new date of the contract.
(Charles Rickards LTD v Oppenheim
how does the CRA15’ deal with time
Under section 52 says reasonable time
then S54 allows for a price reduction
Cutter v Powell
As the contract was for the whole voyage he had not performed the contrat
Ritchie v Atkinson
The ship owner was entitled to be paid for the part of the cargo he had carried as the contract was divisible
Dakin and co. v Lee
Substantial performance applied as there were relatively minor defects in the work
Hoenig v Issacs
Quantum Meruit was used to establish payment to be made
Bolton v Mahadeva
The defects were too great to ammount to substantial performance
Young v Thames properties Ltd
The court used its discretion to reason a just and fair decision
Plance v Colburn
An author was prevented from carrying out his contract so was paid on a QM basis
Sumpter v Hedges
If one party has agreed the other party need not complete the entire contract, the strict rule will not apply
Union Eagle Ltd v Golden Achievement Ltd
A term as to time is treated as a condition if it falls within one of the 3 categories if not it is treated as a warranty
Charled Rickards Ltd v Oppenheim
This also means the right to treat it as a condition can be waived
Discharge by Breach
when a contract has ended because a party didn’t or cant complete their contract
The 3 sets of circumstance giving rise to a breach of contract are
Renunciation by a party of his or her liabilities under it
Impossiblity created by their own act
Total or partial failure of performance
The 3 for repudiatory breach are
A breach of condition
A refusal to perform the contract
a sufficiently serious breach of an innoninate term, could become a breach of condition
What is anticipatory breach and the leading case
When a party gives notice in advance that they will not be completing the contract. V can immediately sue or wait to see if performance has not taken place by the end. Hochster v de la Tour
