02. Discharge of the contract.

Question 1

The normal method of discharge of a contract.

Answer 1

Performance.

Question 2

Performance.

Answer 2

The normal method of discharge of a contract.

Question 3

… performance is sufficient to discharge a contract, despite a party being able to seek redress for that part which did not completely and exacly meet the contract terms.

Answer 3

substantial

Question 4

… performance gives unequivocal dischrge of a contract, all of its tems having been satisfied.

Answer 4

complete and exact

Question 5

A … contract may be discharged after specified stages, for example an employment contract providing for payment each month.

Answer 5

severable

Question 6

A … contract is effectively a series of smaller contracts.

Answer 6

severable

Question 7

If one party prevents performance, the other may discharge the contract by …

Answer 7

offering to perform their side of the contract.

Question 8

Quantum meruit.

Answer 8

As much as they deserve.

An action to claim for partial performance of a contract where complete performance has been prevented by the other party.

Question 9

As much as they deserve.

An action to claim for partial performance of a contract where complete performance has been prevented by the other party.

Answer 9

Quantum meruit.

Question 10

Quantum meruit only applies where …

Answer 10

partial performance has been rendered and complete performance has been prevented by the OTHER party.

Question 11

A party completing part of a contract yet prevented from rendering complete performance by the other, including an author whose publisher cancels a book series, is likely to be able to pursue a claim of … in respect of the work already done.

Answer 11

quantum meruit

Question 12

A party completing part of a contract yet prevented from rendering complete performance by the other, including a builder who completes part of a job but is then sent away by the householder, is likely to be able to pursue a claim of … in respect of the work already done.

Answer 12

quantum meruit

Question 13

If it is impossible to perform a contract when it is made, that contract is …

Answer 13

void

and therefore not a contract at all.

Question 14

Escape clause or force majeure clause.

Answer 14

A clause which prevails if an anticipated impossibility to the completion of a contract arises, such as adverse weather in a shipping contract.

Question 15

A clause which prevails if an anticipated impossibility to the completion of a contract arises, such as adverse weather in a shipping contract.

Answer 15

Escape clause or force majeure clause.

Question 16

Frustration.

Answer 16

The situation in which performance or futher performance of a contract is rendered impossible or totally futile by some extraneous cause, for which neither party is responsible.

Question 17

The situation in which performance or futher performance of a contract is rendered impossible or totally futile by some extraneous cause, for which neither party is responsible.

Answer 17

Frustration.

Question 18

Frustration (does / does not) apply if the peformance of contractual obligations is made more expensive or time consuming by a subsequent event.

Answer 18

does not

Question 19

If the subject matter of a contract is destroyed, including the burning down of a music hall, that contract will be treated by the courts as …

Answer 19

frustrated

Question 20

The personal incapacity of a party to a contract, including death or the mental breakdown of a drummer, is likely to lead to that contract being deemed …

Answer 20

frustrated

Question 21

New Government legislation or case law renders any contract which would contravene it …

Answer 21

frustrated

Question 22

The non-occurrence of an event which is the sole purpose of a contract, including the hiring of chambers overlooking a coronation procession, is likely to lead the the contract being deemed …

Answer 22

frustrated

Question 23

The primary legislation covering frustrated contracts.

Answer 23

The Law Reform (Frustrated Contracts) Act 1943

Question 24

The provisions of the Law Reform (Frustrated Contracts) Act 1949 (can / can not) be overridden by express terms within a contract.

Answer 24

can

Question 25

Consequences of the Law Reform (Frustrated Contracts) Act: [MB & PNM]* except EI in POC or that in respect of a VB obtained despite frustration.

Answer 25

money back and pay no more

Question 26

Consequences of the Law Reform (Frustrated Contracts) Act: MB & PNM except [EI in POC]* or that in respect of a VB obtained despite frustration.

Answer 26

expenses incurred in the performance of the contract, prior to frustration

Question 27

Consequences of the Law Reform (Frustrated Contracts) Act: MB & PNM except EI in POC or that in respect of a VB* obtained despite frustration.

Answer 27

valuable benefit

Question 28

Under the Law Reform (Frustrated Contracts) Act (1943) any money paid before the frustrating event or due after it is repayable/not payable provided that ...

Answer 28

- it is not an expense incurred in the performance of the contract prior to frustration -a party has not received a 'valuable benefit' under the contract

Question 29

In determing the amount of any 'valuable benefit' due to a party under a frustrated contract, the court will award an amount that it considers ...

Answer 29

just, having regard to all the circumstances of the case.

Question 30

If a contract is frustrated after commencement, including one involving the exploitation of an oil concession, the court may make an award in respect of any ... obtained before frustration occurred.

Answer 30

valuable benefit

Question 31

Breach of contract.

Answer 31

The situation in which a party does not perform their contractual obligations sufficiently without lawful excuse.

Question 32

The situation in which a party does not perform their contractual obligations sufficiently without lawful excuse.

Answer 32

Breach of contract.

Question 33

(Some / all) breaches of contract entitle the injured party to seek damages.

Answer 33

all

Question 34

ALL breaches of contract entitle the injured party to seek ...

Answer 34

damages

Question 35

A party suffering a serious breach of contract is able to ...

Answer 35

treat the contract as discharged and sue for damages.

Question 36

Repudiatory breach.

Answer 36

A breach of contract which entitles the injured party to treat it as discharged and sue for damages.

Question 37

A ... breach goes to the root of the contract.

Answer 37

repudiatory

Question 38

A repudiatory breach goes ...

Answer 38

to the root of the contract.

Question 39

A ... breach deprives the injured party of substantially the whole benefit of the contract.

Answer 39

repudiatory breach

Question 40

If a fundamentally important term of a contract is broken, including one requiring an artist to sing on an opening night, the injured party is able to ...

Answer 40

treat the contract as discharged and sue for damages.

Question 41

If a superficial term of a contract is broken, including one requiring an artist to attend a given number of rehearsals, the injured party is only able to ...

Answer 41

sue for damages, NOT treat the contract as discharged.

Question 42

If a party shows explicitly or implicitly that they have no intention of performing their obligations, including acting as courier, the other party ...

Answer 42

may sue immediately in respect of this 'anticipatory breach.'

Question 43

Antipatory breach.

Answer 43

A situation in which a party indicates that they are going to breach a contract in the future.

Question 44

A situation in which a party indicates that they are going to breach a contract in the future.

Answer 44

Anticipatory breach.

Question 45

A victim who becomes aware of a future breach of contract may sue ...

Answer 45

immediately.

Question 46

If a party is a victim of a breach of condition, they may nevertheless continue their performance and sue to ...

Answer 46

recover the agreed price.

Question 47

A victim of a repudiatory breach, including an advertising agency with a garage as client, may nevertheless continue to ...

Answer 47

perform their obligations under the contract and sue to recover the agreed price.

Question 48

A party electing to treat a contract as discharged must ...

Answer 48

notify the other party of their decision.

Question 49

If a contract is discharged, the parties are required to perform any obligations due ...

Answer 49

up to and including the point of discharge.

Question 50

Affirmation.

Answer 50

A situation in which a party does not treat a contract as discharged despite having suffered a repudiatory breach by the other party.

Question 51

A situation in which a party does not treat a contract as discharged despite having suffered a repudiatory breach by the other party.

Answer 51

Affirmation.

Question 52

Innominate term.

Answer 52

A term whose importance is not clear until a contract is underway.

Question 53

A term whose importance is not clear until a contract is underway.

Answer 53

Innominate term.

Question 54

A breach late on in a course of deliveries by installment, including that of furniture padding, is likely to be deemed a breach of ...

Answer 54

warranty.

Question 55

An oral statement by an employee, including a dry cleaner's assistant, ...

Answer 55

can override an exclusion clause.

Question 56

The point of law in Krell v Henry was ...

Answer 56

that the planned coronation was the SOLE reason for the hiring of the chambers. When the coronation was postponed, the 'subject matter' was therefore destroyed as per Taylor v Caldwell when the hall burned down.

Question 57

The situation in which performance of a contract becomes impossible due to no fault of either party.

Answer 57

frustration

Question 58

T/F: in order for frustration to apply a contract must have been legal and possible at the time it was made.

Answer 58

TRUE

Question 59

The rights and obligations in the event of frustration is often detailed in a ... clause.

Answer 59

force majeure

Question 60

The 'Tsakiroglou' case established ...

Answer 60

that an increase in the cost of fulfulling a contract would not of itself constitute grounds for frustration (closure of the Suez canal).

Question 61

T/F: the provisions of the Law Reform (Frustrated Contracts) Act (1943) can be expressly excluded in a contract.

Answer 61

TRUE although e.g. sale of goods, UCTA will may not and will therefore still apply.

Question 62

The duty to mitigate losses only arises ...

Answer 62

once the breach has been acknowledged.

Question 63

In the event of a repudiatory breach any obligations due by the injured party before the breach ...

Answer 63

must still be satisfied.

Question 64

In the event of a repudiatory breach any obligations due by the injured party after the breach ...

Answer 64

need not be performed.

Question 65

Adverse weather, strike action and acts of terrorism are examples of situations potentially covered by a ... clause.

Answer 65

force majeure

Question 66

In Taylor v Caldwell the contract was frustrated by ...

Answer 66

destruction of the subject matter.

Question 67

In Condor v Barron Knights the contract was frustrated by ...

Answer 67

personal incapacity in a contract for personal service.

Question 68

In Krell v Henry the contract was frustrated by ...

Answer 68

the non occurence of an event which was the SOLE purpose of the contract.

Question 69

In BP v Hunt the 'valuable benefit' which the claimant was required to share under the Law Reform (Frustrated Contracts) Act was ...

Answer 69

the increase in value of an oil concession.

Question 70

A party tacking action on anticipatory breach is said to sue ...

Answer 70

on notice.

Question 71

In Avery v Bowden the contract was frustrated by ...

Answer 71

the outbreak of war and consequent 'trading with the enemy' legislation.

Question 72

The key point in determining whether a contract is frustrated is ...

Answer 72

the contractual obligation.