Discharge of contracts + Frustration

Complete performance rule

performance must be completed exactly

Acceptance of part performance

Contract can be discharged if the other party chooses to accept it

(paying for 300 pens when you ordered 500)

Substantial performance

When not complete performance done

Payment can be made to put the damage right

Substantial performance - exception

Only be used where claimant has breached a warranty or innominate - not condition

Divisible contracts

Paid for different parts or percentage of full amount

Prevention of performance

General rule not apply - Innocent party can claim for the work already done

effect of delayed performance

Treated as a condition (Innocent party can end contract and claim damages)

Frustration

Through no fault of parties - Contract cannot be completed

What can amount to frustration (3)

Intervening events which make performance impossible

Performance become illegal

Radical change of circumstances

What will not amount to frustration (4)

When parties create contingencies

Possible to perform just more difficult

If event was foreseen

When event is in control of one of the parties

Remedies to parties of frustration

Money paid in advance

BP v Hunt

BP paid a just sum of what Hunt got paid out as they provided a valuable benefit when Libyan government claimed oil they were looking for