Contract law discharge and breach

Two types of contractual terms

Conditions - central to contract - if not performed main purpose of contract destroyed

Warranty - minor contractual term - not performed main purpose can continue

4 ways for contract to be discharged

Agreement

Performance

Breach

Frustration

Agreement

Rolling contract have clauses specifically outline how contract ended by agreement, early discharge can be agreed by contracting parties

Performance

Performance must be complete and exact

Cutter v Powell - widow not entitled anything, performance of contract wasn't complete

Failure complete performance failure perform obligation ending breach resulting in repudiation and damages Harsh on D

Divisible contracts

Where clearly separated parts found non-completion one part not mean non-completion all elements

Damages - payment made for completed/refund for non-completed

Ritchie v Atkinson - c entitled payment respect cargo carried, liable for what not carried

Substantial performance

D comp;Estes substantial performance contractual terms, not set test determine

Damages - c owed amount reflective work not completed, know quantum merit - as much as worth

Hoenig v Isaac's - substantial performance - entitled payment minus cost repairs

Prevention full performance

One contractual party prevents other competing obligation when begun performing

Planche v colburn - c entitled recover a fee for wasted work

Acceptance of part performance

Party agrees alternat not complete all aspects contract, must be clear understanding and consent to implications, no consent alternate then breach

Damages - if no agreement part performance normal principles of damage apply

Sumpter v Hedges - d no choice but accept part performance, payment cant be recovered til works complete, builder not entitled payment respect work done couldn't be considered substantial performance

Breach

Totally or partially fail to fulfill their agreed contractual obligations

Actual Breach

Fails perform obligations at time expected performance, both parties can breach and make counter claim (non-payment, late performance)

Remedies (actual breach)

Breach any term - damages

Breach condition - right terminate contract, if Suffering party wishes continue (affirm) can still claim damages

Euro cross v Galba - where goods aren't supplied in accordance with agreement amounts breach of contract

Anticipatory Breaches

Contractual party notice in advance wont perform contractual obligation (notified product end of line, double booked)

Hochester v de la tour - c entitled sue immediately adn awarded damages court

Remedies (anticipatory breach)

Any contractual term - damages - position would've been in

Wait to see if actual breach - damages assessed time should've occurred

Different - loss may increase due market factors

Condition - option to terminate

Force Majeur clause

Clause excluding liability for delay in or non-performance in extraordinary circumstances