Discharge of contract

Question 1

What case is an example of discharge by performance?

Answer 1

Cutter v Powell (1795)

Question 2

Cutter v Powell (1795)

Answer 2

Cutter was a crew member on a ship with payment due on completion of a voyage. He died 19 days before the journey ended and his widow was refused the payment as he had not fully performed the contract.

Question 3

What case is an example of divisible contracts?

Answer 3

Bolton v Mahadeva (1972)

Question 4

Bolton v Mahadeva (1972)

Answer 4

The claimant had contracted to install central heating and supply a bathroom suite to the defendant. The heating system was defective, and it cost £179 to remedy the defect, It was held that Bolton could not claim the installation cost, as he had failed to perform the contract. However, supply of the bathroom suit was divisible from the overall payment, and that had to be paid for.

Question 5

What case is an example of one party prevents the other from completing performance?

Answer 5

Planche v Colburn (1831)

Question 6

Planche v Colburn (1831)

Answer 6

The claimant was asked to write a book by the defendant with payment due on completion. The claimant wrote half the book when the defendant changed his mind and asked him to stop. The claimant was entitled to part payment for partly performing his contract.

Question 7

What case is an example of acceptance of part performance?

Answer 7

Sumpter v Hedges (1898)

Question 8

Sumpter v Hedges (1898)

Answer 8

The claimant contracted to build a barn for the defendant but then abandoned the project half-way through. It was held that the defendant did not have to pay for part performance as the defendant did not have a choice but to accept part performance. The defendant only had to pay for materials the claimant had left behind and used by the defendant to complete the building.

Question 9

What cases are examples of substantial performance?

Answer 9

Bolton v Mahadeva (1972)
Hoenig v Isaacs (1952)

Question 10

Hoenig v Isaacs (1952)

Answer 10

A contract to decorate and furnish a flat was held to be substantially performed as full performance only lacked repairs to a bookcase and replacement of a wardrobe door. The total contract cost £750 and it was held that a reduction of £55 be made to cover the bookcase and wardrobe door.

Question 11

What cases are examples of discharge by frustration - Destruction or unavailability of the subject matter ?

Answer 11

Taylor v Caldwell (1863)
Gamerco SA v ICM/Fair Warning (Agency) Ltd (1995)

Question 12

Taylor v Caldwell (1863)

Answer 12

Caldwell agreed to rent a music hall for a series of concerts over four days from Taylor. After the contract was agreed, but before the concerts had taken place, the music hall was destroyed by fire. It was held that performance of the contract was impossible; therefore, the contract was frustrated, and both parties were released from their obligations under it.

Question 13

Gamerco SA v ICM/Fair Warning (Agency) Ltd (1995)

Answer 13

A contract was frustrated when a stadium hired for a rock concert became unsafe and it was not possible to find a alternative venue in time.

Question 14

What cases are examples of discharge by frustration - Death or illness of one of the contracting parties

Answer 14

Condor v Barron Knights (1966)
Atwal v Rochester (2010)

Question 15

Condor v Barron Knights (1966)

Answer 15

A drummer with the Barron Knights became ill and was advised by his doctor to limit performances to four nights a week. It was held that the contract was frustrated as the ability to work only four nights was incompatible with the nature of work. The claimant’s health was preventing him for performing his contractual duties; thus, any contractual obligations were unenforceable.

Question 16

Atwal v Rochester (2010)

Answer 16

Rochester, a builder working as a sole trader, agreed to carry out some building work for Atwal. Rochester did not complete the work because he was advised not to return to work after heart surgery. The work was completed by another builder at a much greater cost. It was held that this was a personal contract. Atwal had chosen Rochester to do the work because of his low price and the fact that he was known to the family. There was no one else Rochester could entrust with the work if he was unable to continue it himself. As Rochester could no longer carry out the work due to ill health the contract was frustrated.

Question 17

What case is an example of discharge by frustration - supervening illegality?

Answer 17

Fibrosa Spolka v Fairbairn Lawson Combe Harbour (1943)

Question 18

Fibrosa Spolka v Fairbairn Lawson Combe Harbour (1943)

Answer 18

A contract was formed between an English firm and a Polish firm for the sale of machinery which became frustrated due to the war.

Question 19

What case is an example of discharge by frustration - governing intervention?

Answer 19

Morgan v Manser (1947)

Question 20

Morgan v Manser (1947)

Answer 20

Where a comedian’s contract was frustrated due to being called up to fight in a war.

Question 21

What cases are examples of discharge by frustration - The event on which the contract is based fails to occur

Answer 21

Krell v Henry (1903)
Herne Bay Steam Boat v Hutton (1903)

Question 22

Krell v Henry (1903)

Answer 22

The defendant hired a flat to watch King Edward VII’s coronation procession. The coronation was postponed due to illness, so the defendant no longer needed the flat. It was held the contract was frustrated as the purpose of the contract was to watch the coronation.

Question 23

Herne Bay Steam Boat v Hutton (1903)

Answer 23

The defendant hired out the claimant’s steamship for two reasons, First, to view the Naval Review which was part of King Edward’s coronation. Second, to have a day of cruising for the passengers. The Naval Review was cancelled due to the postponement of the coronation. The defendant argued the contract had become frustrated due to the cancellation of the Naval Review. It was held that the contract was not frustrated as it was for two purposes and only one of those purposes could not go ahead.

Question 24

What cases are examples of discharge by frustration - Delayed performance ?

Answer 24

Davis Contractors v Fareham District Council (1956)
Amalgamated Investment & Property Co v John Walker & Sons (1977)

Question 25

Davis Contractors v Fareham District Council (1956)

Answer 25

Davis agreed to build 78 houses for Fareham Council. Due to bad weather and a shortage of labour and materials, the houses took much longer to build than anticipated and cost more than at first thought. It was held that the contract was not frustrated. It had only become more costly and difficult to perform, neither of which were frustrating events. The contract could still be performed, and it was not radically different from what was originally agreed.

Question 26

Amalgamated Investment & Property Co v John Walker & Sons (1977)

Answer 26

John Walker had contracted to sell a building to Amalgamated Investments. Amalgamated asked if the building was listed as having any historic or Architectual interest as they wanted to develop the property. John Walker stated that there was not. However, the building became listed and Amalgamated asked for the contract to be set aside due to frustration. It was held that there was no frustration, listing meant that the development of the property would be difficult but did not prevent the contract from being performed.

Question 26

Amalgamated Investment & Property Co v John Walker & Sons (1977)

Answer 26

John Walker had contracted to sell a building to Amalgamated Investments. Amalgamated asked if the building was listed as having any historic or Architectual interest as they wanted to develop the property. John Walker stated that there was not. However, the building became listed and Amalgamated asked for the contract to be set aside due to frustration. It was held that there was no frustration, listing meant that the development of the property would be difficult but did not prevent the contract from being performed.