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contract: Discharge1
| Question | Answer |
|---|---|
| Ways in which discarge may occur (4) | 1. Performance, 2. Agreement, 3. Breach, 4. Frustration |
| 1. Discharge by Performance (1) | Entire obligations rule - parties are obliged to complete all the obligations before contract can come to an end |
| Avoiding Entire obligations rule (4) | 1.Partial performance 2.Substantial Performance |
| 3. Divisible Contracts 4.Performance by 3rd party | |
| Partial Performance Rule and cases (2) | Innocent party not obliged to pay unless they VOLUNTARILY ACCEPT partial performance 1. Sumpter v Hedges (half built) 2. Vigers v Cook (corpse) |
| Substantial Performance rule and Cases (2) | Obligation to pay full contract price LESS cost of remedying defects, 1. Hoenig v Isaacs (furniture) 2. Bolton v Mahadeva (central heating) |
| Divisible contracts rule and Cases (1) | Where contract itself allows for performance of one or more obligations separately from others 1. Rose & Frank v Compton Bros (toilet roll) |
| Performance by 3rd Party Rule and Cases (2) | Acceptable UNLESS a contract of ‘personal service’ where only particular party can complete the job. 1. Robson v Drummond (Carriage painter) 2. British Wagon v Lea (Railway Carriage) |
| 2. Discharge by Agreement (2) | 1. New Contract (waiver), 2. Perfomance of Term in Contract (2) i. Condition Precedent ii. Condition Subsequent |
| Types of discharge by new contract (2) | 1. Mutual waiver of performance-Where contract is WHOLLY executory (ie. both parties haven’t completed obligations 2. accord and Satisfaction - where the contract is partially executed (ie. only one party have completed obligations |
| Types of performance of a term in contract (2) and cases (2) | 1. Condition Precedent (Pimm v Cambell) 2. Condition Subsequent (Head v Tattersall) |
| 4. Types Discharge by Breach (2) | 1. Actual Breach 2. Anticipatory Breach |
| Breach of Contract (3) | 1. The Santa Clara 2.Howard v Pickford Tool (Paranoid Director) 3. Peyman v Lanjani |
| Anticipatory Breach (2) | 1. Hochter v De la Tour 2. Frost v Knight |
| Cutter v Powell | Discharge by performance. entire obligations rule. Mr Cutter contracted to sail from Jam to Liverpool. for 30Gs. contract stated only Paid 10 days after Liverpool. Died enroute. widdow sued. D:Entire obligation was not complete therefore. No payment |
| Sumpter v Hedges | Discharge by performance. Acceptance of Part Performance. C only completed half of work on D's land. left materials. D finished work. refused to pay. C claim D voluntarily accepted by finishing himself. D: D had no choice. No voluntary acceptance |
| Vigers v Cook | C funeral director contracted to deliver D son body to church & bury. Coffin vent was closed, body decomposed. had to be left ouside. D: D did not voluntarily accept partial performace |
| Hoenig v Isaacs | Substantial Performance. C made bad furniture & D paid 50% claiming partial performance of C. D: Sub Performance, C entitled to full contract price LESS remedy costs |
| Bolton v Mahadeva | Sub Performance. C installed faulty central heating. D refused to pay. C claimed Sub Performance full contract price. D: Partial Performance, not entitled to full price, had he offered to fix, he could have a claim |
| Rose & Frank v Crompton Bros | - Divisible Obligations |
| Robson and Sharpe v Drummond | Performance by TP D contracted to have carriage painted by renowed painter Sharp, Robson was sent instead and D refused to pay. D |
| British Waggon v Lea | Performance by TP Contract for 7 year let and repair on railway wagons. D: work was of ordinary nature can be done by average man |
| The Hannah Blumenthal | Discharge by Agreement, Mutual waiver |
| D. & C Builders v Rees. | Discharge by Agreement, new contract: accord & satisfaction D: Check for 300 did not discharge £482 debt. and they forced them to accept the money or threatened with 0 |
| Birmingham v London & North Western Railway | Waiver unsupported by consideration. concession, waiver or variation promised by one party, enforced in equity subject to proper notice given to other party |
| Brikom Investments v Carr | Waiver unsupported by consideration Landlords orally promised to repair roofs at own expence, did so and claimed payment from tenants under terms of the leases. D: Promissory Estoppel rules apply, tenants relied on the claim |
| Pym v Campbell | Condition Precedent Where condition precedent is not fulfilled, there's no true discharge as rights and obs under contract depended on the event which didn't occur. Right and obs never came into existance |
| Head v Tattersall | condition Sub. contract for Horse 2terms 1) return & refund if fault found by Wed 2) Horse hunted with Bicester hounds. homebound horse dies. Buyer returns, claims it never hunted. D: Must refund, it was condition precedent |
| condition precedent Condition Subsequent | a condition that must be satisfied before any rights come to exist (initates a duty) Sub: term dischargeing outstanding obligations in the event of a specified occurance (brings a duty to an end) |
| When do you have The Right of Election | Breach of CONDITION or serious INNOMINATE term IP right to elect to AFFIRM or TERMINATE contract & DAMAGES Discharged only if IP elect to treat breach as repudiating contract. Must make decision aware to other P an unaccepted repudiation is of no v |
| **The Santa Clara | Discharge by Breach. Repudiation can be accepted by conduct Receiving party cancelled contract as delivery would be late. no reply, cargo was sold to another at a loss. claimed breach of contract. was the breach accepted by doing nothing about it |
| Howard v Pickford Tool | Discharge by Breach: Election C work's behaviour will result in so sued. D: no claim, too early. stages: Repudiation, acceptance of repudiation, communication of intent to terminate. 'unaccepted repudiation is no value to anybody'-Asquith LJ |
| Peyman v Lanjani | Discharge by breach: Election If decide to affirm/ terminate not knowing your rights, you can change mind. Rogue lawyer advised C to affirm. C found he should have terminated from 2nd opinion |
| Hochster v De la Tour | Anticipatory Breach. D changed mind and no longer needed a courier C he contracted. C sued immidiatly and got damages |
| Frost v Knight | Anticipatory Breach D promised C marriage when father died. cancelled when father still alive. D: C can immidiately sue on the promise. even though father still alive as date of performance had not yet arrived |
| Stocznia Gdanska SA v Latvian Shipping Co (No 3) | Anticipatory Breach. Innocent P allowed reasonable time to decide whether to affirm or not D late on instalments for 6 ships, argued C affirmed. D every late payment, C has reasonable time to decide what to do |
| Yukong v Rendsburg Investments | Anticipatory Breach. Affirmation Must be ‘clear & unequivocal |
| White and Carter v McGregor | Anticipatory Breach. Obligations and rights remain on both sides if IP elect to affirm. D mistakenly renewed a Bin advertising contract with C & tried to cancel. C continued & sued for full £. D |
| The Alaskan Trader | affirmation. No legitimate interest if affirmation ‘wholly unreasonable. 2yr Ship hire. 8ms later needed 800k repair. d want contract cancel. C waits 1yr sue for breach. D: unreasonable, C knew d weren’t gonna return. Shoulda accepted original breach |
| Ocean Marine Navigation Ltd v Koch Carbon Inc (The Dynamic) | affirmation: Only extreme cases that IP WONT have legitimate interest i) burden on Fault P to show IP has no legitimate interest in perfomring contract than claiming damages 2 CANNOT merely show that benefit is small in comparison to the loss of fa |
| Reichman v Beveridge | Affirmation |
| Hounslow v Twickenham Garden Developments | affirmation. Party must not need co-opporation of the party in breach. D continued work on C’s land after C cancelled. D NO affirmation, D tresspassed |
| Avery v Bowden | dangers of affirmation Frustrating event may deny right to damages. Contract to collect goods from Black Sea port. Supplier tells ship owner goods wont arrive due to war. O affirm contract and wait at port til contract date. War starts. Ship impounded |
| The Simona | Dangers to Affirmation, where IP Affirms in response to anticipatory breach and then commit breach themself. the repudiating P may escape liability for their own wrongful repudiation. |
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freckle_speckle