Part 1: Summary Flashcards
How can the party be discharged by performance and what are the exceptions?
The entire contract, both parties should fulfil there obligations completely (full performance)
Certain exceptions:
1. One party accepted partial performance
2. Contract has been substantially performed
3. One party prevents the other from performing
4. One party has tenders performance
5. The obligations in the contract are severance
When is “time of the essence”?
A promise as to the time of a performance may be a valid term and breach of it means the contract can be repudiated.
If not - viewed as a innominate term - court to decide impact of breach.
A promise as to time is treated as vital if:
1. Parties indicate that it is a vital term
2. The circumstances indicate it is a vital term.
How are contracts discharged by breach of contract?
An innocent party may end the contract and / or claim damages if the term breached is a condition.
If warranty - entitled to claim damages.
How are contracts discharged by agreement?
A contract may be ended by agreement if neither party has performed their obligations.
If only one party has performed - the one who hasn’t may be released by the other from their promise only for some consideration (accord and satisfaction)
How are contracts discharged by frustration?
A contract ends when unforeseen circumstances, neither party at fault, make performance impossible or illegal.
- Death or illness
- Destruction of essential subject matter
- Event fundamental to contract that radically changed the commercial purpose of the contract does not take place
- Government interference
- Illegality
