Discharge (Paper 3-Section A Topic 7) Flashcards
What is meant by discharge of contract?
The main obligations of the contract have to come to an end
Name the 3 ways a contract can be discharged without the parties fulfilling their obligations
By performance
By frustration
By breach
What does the strict rule state for discharge by performance?
The performance must be completed and exact
Give the held of: Cutter v Powell
She was entitled to nothing because he agreed to work the entire voyage so his work wasn’t complete
Give the held of: Re Moore and Landauer
C was able to reject the tins he ordered as they were not packed in sixes
Name the 4 ways the strict rule can be avoided by performance
Prevention of full performance
Acceptance of part performance
Divisible contracts
Substantial performance
What is quantum merit?
The party can claim for the work they did even though the o ligations hasn’t been fulfilled as agree
Give the held of: Planche v Colburn
Author was able to recover a fee for his work done
Describe the law on acceptance of past performance
Has to be consent for this to apply-free from pressure
Not consent of the innocent party has no option but to take the benefit of the work done
Give the held of: Sumpter v Hedges
They did not consent to the builders part performance so he wasn’t entitled to any payment
Describe divisible contracts
Contracts have separate parts
Must be clearly divided
Non-completion of one part doesn’t breech entire contract
Give the held of: Richie v Atkinson
Ship owner entitled to get paid for cargo carried but he had to pay damages for breach of contract as he didn’t carry entire cargo
Describe substantial performance
Party has “substantially” done enough
Payment must be completed for appropriate work done
Give the held of: Darkin & Co. v Lee
Builders were entitled to the money for the work they’ve done
Give the held of: Hoeing v Isaacs
Decorator was entitled to be paid for what he had done on a quantum merit basis
Give the held of: Bolton v Mahadeva
The builder was entitled to nothing as the contract wasn’t substantially performed
Give the held of: Young v Thames Properties Ltd
Although the work was effective the contractors needed to be paid for the work done
When is time seen as a condition in performance ?
In contract “time is off the essence”
Time is critical
Hasn’t performed on time so other party insisted on another date
Give the held of: Union Eagle v Golden Achievement
Time was a condition to the contract so the seller successfully re updated the contract
Give the held of: Charles Richards v Oppenheim
He was entitled to do so as time was of the essence
What are the remedies available for discharge by performance?
Quantum merit
Repudiation
Specific performance
Damages
What does the strict rule state about discharge by frustration?
A party was bound to perform their contractual obligation even if intervening act made it impossible
Give the held of: Paradine v Jane
D was forced to pay rent although they couldn’t live in the property
What does the currant law on discharge by frustration?
Frustration occurs if there is an unforeseeable intervening event which meant the contract cannot be performed
Name the 3 types of frustrated contracts?
Impossible to complete
Illegal to complete
Radical change
Contacts can be impossible to complete if…
Subject matter is destroyed
Subject matter is unavailable
If the person is unavailable
Give the held of: Taylor v Caldwell
The contract was frustrated as the hall was destroyed
Give the held of: Jackson v Union Marine Insurance
The contract was frustrated as the ship was unavailable
Give the held of: Condor v The Baron Knights
The drummer of the band became ill so the contract was frustrated
Give the held of: Denny, Mott & Dickinson Ltd v James B. Fraser & Co. Ltd
Importing certain types of timber became illegal so the contract was fristrated
Give the held of: Krell v Henry
The contract was frustrated as the main purpose of the booking of the room was to watch the coronation procession
When can frustration not apply?
Self induced
Contract is less profitable/more difficult to complete
Foreseeable event
Give the held of: Maritime National Fish Ltd v Ocean Trawlers Ltd
It was self induced as the party could have used a lisence for a hired boat
Give the held of: David Contractors v Farnham
Contract wasn’t frustrated when price of materials increased beyond anticipation
