contract law

• Discharge of a Contract

  A situation where the contract is brought to an end
• Discharge by Performance


  1. The General Rule of Discharge by Performance

  2. Divisible Contracts

  3. Substantial Performance

  4. Prevention of Full Performance

  5. Acceptance of Part Performance
• The General Rule of Discharge by Performance

  Discharge by performance can only be done if the performance was complete and exact
• The General Rule of Discharge by Performance

  • Cutter v Powell (1795)
• Divisible Contracts


  Where a contract can be split up into separate parts, if there is non-completion of one part of the contract then this will not be seen as a breach of the whole contract
• Divisible Contracts


  • Ritchie v Atkinson (1808)
• Substantial Performance


  The doctrine of substantial performance states that payment of the amount appropriate to what has been done can be paid for the performance that was given
• Substantial Performance


  • Dakin and Co. v Lee (1916)
  • Hoenig v Isaacs (1952)
  • Bolton v Mahadeva (1972)
  • Young v Thames Properties Ltd (1999)
• Prevention of Full Performance


  If one party prevents the other from carrying out the contract, then the innocent party can claim to be paid on a quantum meruit ('as much as it is worth') basis
• Prevention of Full Performance


  • Planche v Colburn (1831)
• Acceptance of Part-Performance

  If one party has agreed that the other party need not complete the entire contract, then the contract must be paid on a quantum meruit ('as much as it is worth') basis
• Acceptance of Part-Performance


  • Sumpter v Hedges (1898)
• The Effect of a Term as to Time for Performance of a Contract

  1. The Courts will regard a 'time' term as a condition where

  2. If none of the above apply, then the 'time' term will be treated as a warranty rather than a condition
• The Effect of a Term as to Time for Performance of a Contract

  • Charles Rickards Ltd v Oppenheim (1950)
  • Union Eagle Ltd v Golden Achievement Ltd (1997)
• Section 52 of the Consumer Rights Act 2015 also discusses the time for performance of a contract
• Applying our Knowledge to Practice Exam Questions

  1. Question 1

  2. Question 2
• Discharge by Breach


  1. Actual Breach

  2. Anticipatory Breach

  3. Remedies for a Breach
• Actual Breach


  When a party fails to perform their obligations under a contract, they may be sued for breach of contract
• Repudiatory Breach


  A breach of contract that is sufficiently serious that it entitled the innocent party to treat the contract as terminated
• Repudiatory Breach

  • Stocznia Gdynia SA v Gearbulk Holidays (2009)
• Anticipatory Breach


  An anticipatory breach of contract occurs when a party to a contract gives notice in advance to the other party that they will not be performing or completing the contract
• Anticipatory Breach


  • Hochester v de la Tour (1853)
  • Geden Operations Ltd v Drybulk Handy Holdings Inc. (Bulk Uruguay) (2014)
• Applying our Knowledge to Practice Exam Questions

  Question 3
• Discharge by Frustration


  1. The General Rule of Discharge by Frustration

  2. Frustration is Allowed Where: there is impossibility, illegality or radical change of circumstances
• ill not be carrying out the contract. This will amount to repudiation and the innocent party can treat the contract as at an end. However, uncertainty about future performance does not suffice for an anticipatory breach.
• Repudiation


  Words or conduct which evince an intention by the contracting party no longer to be bound by their contractual obligations
• Self-induced impossibility


  Conduct by the contracting party which puts it out of their power to perform their contractual obligations
• Discharge by Breach - Remedies:
• Discharge by Frustration - The General Rule of Discharge by Frustration:
• Frustration


  If a party to a contract was prevented from keeping their promise because of an unforeseeable, intervening event, then they are not liable for a breach of contract.
• Frustration is Allowed Where: there is impossibility of performance, or the contract becomes illegal to perform.
• Frustration is Not Allowed Where: there is self-induced frustration, the contract becomes less profitable, or the event being a foreseeable risk was mentioned in the contract.
• Remedies for Frustration:
• Discharge by Frustration - Impossibility of Performance:
• Discharge by Frustration - The Contract Becoming Illegal to Perform:
• Discharge by Frustration - The Contract Has Become Fundamentally Different:
• When Will Frustration Not Apply - Self-Induced Frustration:
• When Will Frustration Not Apply - The Contract Has Become Less Profitable:
• When Will Frustration Not Apply - The Event Being a Foreseeable Risk or the Event was Mentioned in the Contract:
• The Law of Frustration and Justice: