Discharge

• Discharge - number of ways

  That a contract can be brought to an end by: performance; agreement; breach and frustration
• Discharge - 1st way, Cutter v Powell

  Held that if a contract requires entire performance and a party fails to perform the contract in its entirety, they are entitled to nothing from the other party under the contract.
• Discharge - 1st way, Hoenig v Isaacs


  If C had substantially performed the contract they were entitled to the contractually agreed price minus the cost of the defects
• Discharge - 1st way, Bolton v Mahadeva


  C’s claim failed where the court held there was no substantial performance.
• Discharge - 1st way, Ritchie v Atkinson


  Where the contract is severable C is entitled to payment for the amount supplied
• Discharge - 1st way, Sumpter v Hedges


  Held that part-performance can be accepted by the other party, as long acceptance is freely given
• Discharge - 1st way, Planche v Colburn


  Held that C was entitled to recover money for the work completed, because D had prevented the performance
• Discharge - 2nd way


  Agreements can end a contract when they are bilateral (and both parties gain a new benefit) but unilateral agreements (where only one party gains a benefit) must be made under a seal to be enforceable
• Discharge - 3rd way

  Where a part fails to perform an obligation, performs an obligation defectively or indicates in advance that they will not be performing an agreed obligation under a contract.

  Actual or anticipatory
• Discharge - 3rd way, Frost v Knight and Avery v Bowden


  C can sue for anticipatory breach of contract as soon as the other party indicates that they will not perform
• Discharge - final way

  A contract may be frustrated where there exists a change in circumstances, after the contract was made, which is not the fault of either of the parties, which renders the contract either impossible to perform or deprives the contract of its commercial purpose.
• Discharge - final way

  Where a contract is found to be frustrated, each party is discharged from future obligations under the contract and neither party may sue for breach.

  The allocation of loss is decided by the Law Reform (Frustrated Contracts) Act 1943
• Discharge - contracts can be frustrated by…

  Impossibility (Taylor v Caldwell)

  Illegality (Fibrosa Spolka v Fairbairn)

  Commercial sterility (Krell v Henry)

  Possible that the loss of members of staff could be classed as unforeseeable events which make a performance impossible.

  Robinson v Davison - frustrated when the pianist was too ill to perform.

  Nickoll and Knight v Ashton Edridge & Co - naming the exact ship = frustrated, impossible for this ship to carry the cargo within the agreed period