mini test

• What is the complete performance rule?

  the performance of the contract must be complete
• What is a divisible contract?

  a contract that can be divided into constituent elements. Breach of one part does not mean they are in breach of the whole thing
• Why was the decorator entitled to payment in Hoenig v Isaacs?

  the cost of fixing the defects was only £56 so the decorator was entitled to the rest of the money.
• If performance is delayed, does this give you the right to end the contract immediately?

  Yes. It would be treated as a breach of an innominate term
• On what three grounds may a contract be frustrated?

  1. Intervening events which make performance impossible
  2. Where performance becomes illegal
  3. Where there is a radical change of circumstances
• Why was there no frustration in Herne Bay v Hutton?

  because the review was not the foundation of the contract and the cruise around the fleet was still possible
• What is meant by self-induced frustration?

  if the frustrating event is brought about by the fault of one of the parties so frustration will not apply.
• What was the point of law in Davis v Fareham?

  The nature of what he was expected to do had not radically changed - build houses
• What does S.1(2)Law Reform (Frustrated contracts) Act 1943 say should happen to money paid in advance under the contract in the event of frustration?

  money already paid is recoverable and money already due under the contract is not payable. Court has discretion to allow a party to keep or recover some or all of the advance payment for work done and expenses incurred before.
• What does S.1(3) of the Law Reform (Frustrated contracts) Act 1943 deal with?

  Where one party gains a valuable benefit before the time of frustration, then the court can order that party to pay a 'just sum' in return for it.
• What is the difference between an actual and an anticipatory breach?

  An actual breach is where a party refuses to fulfill their side of the contract whereas an anticipatory breach is where a party gives advance notice of when they will not fulfill their side of the contract
• What type of breach was there in Hochster v De La Tour?

  Anticipatory breach of contract