Discharge

• What does Discharge of contract mean?


  The end of the contract usually done by performance.
• What is the general rule of discharging by performance?

  the obligations must be "complete and exact"
• What is the case where C's husband agreed to work on a fixed fee and died near the end of the voyage?

  Cutter v Powell
• What was held in Cutter v Powell?

  Mrs Cutter was entitled to nothing as Mr Cutter had agreed to work throughout the entire voyage and had not done so.

  The strict, general rule is that performance must be complete and exact.
• What are the exceptions to the strict rule?

  1. Tender of performance

  2. Severable contracts

  3. Substantial performance

  4. Acceptance of part-performance

  5. Delayed performance
• What is the rule for Tender of Performance?

  If one party prevents the other from carrying out his contract, then the innocent party can claim to be paid on a quantum meruit basis.
• What is the case where D hired C to write book series. D decided to abandon it and C could not complete the work?

  Planche v Colburn
• What was held in Planche v Colburn

  C was entitled to recover a fee ( on a quantum meruit basis) for the work completed. C was entitled to £50
• What is the rule for severable contracts?

  When a contract can be seen as being separate parts, non-completion of one part is not a breach of the whole contract.
• What is the case where C agreed to carry hemp and iron but only carried a part of it. D tried using the cutter rule to deny payment?

  Ritchie v Atkinson
• What was held in Ritchie v Atkinson?

  The contract could be divided into sperate parts as the parties had agreed a price per ton. C was entitled to payment for the amount carried.
• What is the rule of substantial performance?

  If a party has done almost everything the contract will be seen as substantially performed and therefore discharged. The party will only be able to claim payment for the amount of work that has been done.
• What is the case where C performed the contract completely, but some of it was poorly performed?

  Dakin & Co v Lee
• What was held in Dakin?

  The fact that some of the work had been performed properly did not mean there had been no performance. They has substantially performed their obligations.

  C entitled to the price minus a reduction in price for the defective work.
• What is the rule for acceptance of part performance?

  Specific acknowledgement must be given that the party will be paid for the work completed, and there must be no undue pressure. The innocent party must have a genuine choice.
• What is the case where C agreed to build 2 houses for D but only did half of the work and D completed the work himself?

  Sumpter v Hedges
• What was held in Sumpter v Hedges?

  D had no choice but to complete the work himself as he was left with half-built houses on his land. He had no alternative so therefore C was not entitled to be paid.
• When do courts regard time as a condition?

  - parties expressly stated that the time of performance is critical( time is of the essence)

  - Time for completion of the contract is critical

  - One party has failed to perform on time and the other has insisted on a new date for completion of the contract
• What happens if none of these are stipulated?

  The courts will regard time as an innominate term and therefor the outcome of the breach will be judged upon breach.
• What is the case where rolls royce was not built by the fixed date. the body was not completed by that date.

  Charles Richard Ltd v Oppenheim
• What was held in Oppenheim?

  The C was entitled to cancel the contract as the time had been made if the essence and that the term had not been complied with.
• What is the case where the buyer had until 5pm to buy a flat?

  Union Eagle Ltd v Golden Achievement
• What was held in Union Eagle?

  The seller repudiated the contract, and the court agreed that they were entitled as the time had been made condition of the contract.
• What is frustration?


  Where a party is prevented from performing their contractual obligations, or where the purpose for which parties entered into a contract has radically altered.
• What is the case that set out frustration from the first civil war?

  Paradine v Jane
• What is a force majeure clause?

  A clause that excludes liability for unforeseen natural events
• What are the 3 cases for impossibility?

  Taylor v Caldwell

  Jackson v Union Marine Insurance Co

  Robinson v Davidson
• What is the case where a music hall burned down and C didn't get paid for these events?

  Taylor v Caldwell
• What was held in Taylor v Caldwell?

  The claim for breach of contract failed. The contract had been frustrated by the fire and therefore contract ended.
• What was the case where a ship got damaged and could not be loaded for a long time?

  Jackson v Union Marine insurance co
• What was held in Jackson v Union Marine?

  There was an implied term that the cargo would be loaded "in a reasonable time" the damage of the ship prevented this therefore frustrating the contract.
• What is the case where a pianist became ill and could not perform?

  Robinson v Davidson
• What was held in Robinson v Davidson?

  her illness was a frustrated event and the claim failed.
• What is illegality?


  If the law changes so the subject of the contract becomes illegal, the contract may become frustrated.
• What are the 2 cases for illegality?

  Denny, Mott & Dickson

  Re Shipton Anderson & Co v Harrison Bros
• What is the case where the purchase of timber became illegal?

  Denny, mot & Dickson
• What was held in Denny?


  The wartime control order had frustrated the contract so the purchase of the timber yard could not occur as it was illegal.
• What is the case about a cargo of grain?

  Re Shipton Anderson & Co v Harrison Bros
• What was held in Re Shipton?

  The government aimed to seize the cargo, thus making the contract illegal to complete and the contract was therefor frustrated
• What s a radical change in circumstance?

  If there is a radical change of circumstances such as essential commercial purpose of the contract cannot be achieved then the contract may be frustrated.