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

Substantial performance

Payment is made only for the work done

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 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

Frustration - 1

Intervening events which make performance impossible

Frustration - 2

Performance becomes illegal

Frustration - 3

Radical change of circumstances

Not frustration - 1

When parties create contingencies

Not frustration - 2

Possible to perform however more difficult

Not frustration - 3

If event was foreseeable when formed

Not frustration - 4

when event is in the control of one party

s.1(2) Money paid in advance

allows party to recover some money for work done before event

s.1(3) performance which provides a valuable benefit (other than money)

Can be paid a just sum for work done before frustrating event

BP v Hunt

BP paid a just sum of what H got paid out as they provided a valuable benefit