Discharge of contract

where a contract

comes to an end due to

4 reasons

performance, agreement, breach, frustation

must be complete and exact, which can be harsh

Cutter v Powell

modifications to

deal with harshness

1- where a contract is divisible into parts

non-completion of one part is

not breach of the full contract as in

Ritchie v Atkinson

2- if a party has substantially

done what was required of them under the contract

they must be paid for what has been done as in

Dakin & Co v Lee with the principle of quantum meruit.

3- if full performance is prevented

by the other party,

innocent party can be paid quantum merit

Planche v Colburn

4- if acceptance of part performance by both parties

can discharge if agreement is genuine

cannot apply where

full performance is prevented

not consent to part performance as in

sumpter v hedges

failure to perform on time is usually

breach of warranty, so cannot repudiate

unless where time is of the essence as in

Union Eagle Ltd v Achievement Ltd

2. Agreement, where both agree + provide consideration

they can also agree to discharge/vary contract

3. Breach

comes in 2 forms

actual breach

occurs at the time- either total or partial failure to perform

if of a condition

repudiation

Anticipatory breach

gives notice in advance, party can wait until time to act or immediately

as in

Hochester v de la Tour

4. Frustration

prevented from fufilling obligations due to

an unforseeable, intervening event (not breached)

Taylor v Caldwell

some may include clauses that exclude liability for

delays in performance or not performing if extraordinary events

can take place in 3 ways:

1- impossible to perform:

where subject matter is unavailable

Jackson v Union marine insurance

party is ill

Robinson v Davidson

failing to perform on medical advice

Condor v The Baron Knights

2- chnage in law that makes illegal to perform

Denny, Mott and Dickinson v James Fraser & Co

3- if main purpose is based on a particular event, that will not take place

Krell V Henry

exceptions:

self induced

maritime national fish v Ocean trawlers

where contract becomes less profitable

Davis Contractors Ltd v Fareham Council

even was a forseeable risk or mentioned in contract

AIP v Walker & sons

Remedies:

found in

Law reform (frustrated contracts) Act ‘43

sections:

S.1(2) and (4)

money already paid (deposits)

recoverable

money already due is

not payable d

discretionary:

compensated for expenses occurred before frustrating event -quantum merit

also other party could be compensated for any

valuable benefit one party may have acquired under contract