discharge of the contract

Question 1

In the lecture we covered the ways in which contracts can be discharged.

What do you understand by the term ‘discharge of contract’?

1. The term covers the ways in which the courts help a contract remain alive
2. The term covers the ways in which a contract can come to an end
3. The term covers the ways in which damages are calculated

Answer 1

2. The term covers the ways in which a contract can come to an end

Question 2

There are several ways in which a contract can be discharged (come to an end).

Which of the following is not a way?

1. Breach
2. Frustration
3. Performance
4. Conduct

Answer 2

4. Conduct

Question 3

In Planche v Colburn the defendant asked the claimant to write a book. The book was never finished.

What was the reason for this?

1. The defendant was prevented from finishing the book by the claimant.
2. The claimant just stopped writing the book halfway through as he disliked the project.
3. The defendant instructed the claimant to stop writing the book.
4. The contract was frustrated due to unforeseen events.

Answer 3

3. The defendant instructed the claimant to stop writing the book.

Question 4

The case of Krell v Henry falls under which area of law?

1. Performance
2. Frustration
3. Agreement
4. Breach

Answer 4

2. Frustration

Question 5

For a contract to be discharged by performance, the actions of the parties must be exactly what is promised under the contract.

Can you identify any exceptions to this rule in the list below?

(a) Where there has been substantial performance of the contract.
(b) Where the contract is a divisible contract.
(c) Where one party is prevented by the other from completing the contract.
(d) Where partial performance of the contract is accepted by the other party.

1. (a) (b) and (c) only
2. (b) and (d) only
3. (a), (c) and (d) only
4. (a) (b), (c) and (d)

Answer 5

4. (a) (b), (c) and (d)

Question 6

Superfoods Ltd enter into a contract with Bolland and Harrett for the supply of a new homeopathic flower remedy using a variation of St. John’s Wort (a herbal remedy commonly used to help
those suffering with low mood). Bolland and Harrett are keen to stock the product and place an order for £10,000.

Before delivery, the Government ban the remedy due to
concerns in the manufacturing process.

Can Superfoods Ltd enforce the contract?

1. No, the contract is frustrated
2. No, as there is no breach of contract
3. Yes, because Superfoods Ltd have already paid the contract price of £10,000

Answer 6

1. No, the contract is frustrated

Question 7

Which of the following is correct in relation to a contract that has not been completed but has been substantially performed.

1. The innocent party is required to pay the full contractual amount.
2. The innocent party is required to pay the amount due, considering the shortcomings of the contract and deducting an amount accordingly.
3. The innocent party may refuse to pay any money owed until full completion has taken place.
4. The innocent party must pay 50% of the contractual fee and nothing more, regardless of the amount of work completed.

Answer 7

2. The innocent party is required to pay the amount due, considering the shortcomings of the contract and deducting an amount accordingly.

Question 8

Which one of the following statements about frustration is false?

1. Government intervention can frustrate a contract
2. Frustration always occurs before a contract is entered into
3. If the event upon which the contract is based fails (or becomes radically changed), then a contract may be frustrated
4. Frustration can occur when the subject matter of a contract is destroyed

Answer 8

2. Frustration always occurs before a contract is entered into

Question 9

Which one of the following is not a method by which a contract can be discharged?

1. Discharge by misrepresentation
2. Discharge by performance
3. Discharge by breach
4. Discharge by agreement

Answer 9

1. Discharge by misrepresentation

Question 10

The case of Condor v Barron Knights concerns a drummer who became ill and could only perform four nights a week.

Under which area of law does this case fall?

1. Destruction or unavailability of the subject matter
2. Delayed performance
3. The event on which the contract is based fails to occur
4. Death or illness of one of the contracting parties

Answer 10

4. Death or illness of one of the contracting parties