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Contract Law > 23-Discharge of a Contract > Flashcards

23-Discharge of a Contract Flashcards

1
Q

What case is an early example that discharge by performance must be complete and exact?

A

Cutter v Powell (1795)

Facts: Cutter agreed to work on a ship for its full voyage but died half way. Wife not entitled to his fee.

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2
Q

Cutter v Powell (1795)

What principle does this case demonstrate

A

Principle: that discharge by performance must be complete and exact.

Facts: Cutter agreed to work on a ship for its full voyage but died half way. Wife not entitled to his fee.

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3
Q

What case modern example of discharge by performance must be complete and exact?

A

Re Moore and Co and Landauer and Co.’s Arbitration (1921)

Facts: Supplier of tinned foods provided their tins in packs of a different number than that stated in the contract.

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4
Q

Re Moore and Co and Landauer and Co.’s Arbitration (1921)

What principle does this case support?

A

Principle: discharge for performance must be complete and exact.

Facts: Supplier of tinned foods provided their tins in packs of a different number than that stated in the contract.

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5
Q

The harshness of the rule of discharge by performance is tempered by what factors?

A

1) Divisible contracts-Ritchie v Atkinson (1808)
2) Substantial performance-Dakin and Co. v Lee (1916
3) Prevention of full performance-Planche v Colburn (1831)
4) Acceptance of part-performance-Sumpter v Hedges (1898)

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6
Q

The first factor tempering the harshness of the rule on discharge by performance?

A

Divisible contracts
Ritchie v Atkinson (1808)
Facts: Ship owner agreed to carry cargo but only actually carried part of it-ship owner entitled to that amount but was charged for breach of contract.

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7
Q

Ritchie v Atkinson (1808)

What factor does this case demonstrate regarding the harshness of the rule on discharge by performance?

A

Divisible contracts

Facts: Ship owner agreed to carry cargo but only actually carried part of it-ship owner entitled to that amount but was charged for breach of contract.

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8
Q

The second factor tempering the harshness of the rule on discharge by performance?

A

Substantial performance
Dakin and Co. v Lee (1916)
Facts: Builder completed works but certain things were completed inadequately that had to be paid for. Court decided work was still completed.

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9
Q

Dakin and Co. v Lee (1916)

What factor does this case demonstrate regarding the harshness of the rule on discharge by performance?

A

Substantial performance

Facts: Builder completed works but certain things were completed inadequately that had to be paid for. Court decided work was still completed.

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10
Q

What case demonstrates the tempering nature of ‘divisible contracts’ on the rule of discharge by performance?

A

Ritchie v Atkinson (1808)

Facts: Ship owner agreed to carry cargo but only actually carried part of it-ship owner entitled to that amount but was charged for breach of contract.

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11
Q

What case demonstrates the tempering nature of ‘substantial performance’ on the rule of discharge by performance?

A

Dakin and Co. v Lee (1916)

Facts: Builder completed works but certain things were completed inadequately that had to be paid for. Court decided work was still completed.

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12
Q

The third factor tempering the harshness of the rule on discharge by performance?

A

Prevention of full performance
Planche v Colburn (1831)
Facts: C-an author was paid quantum meruit for writing a book as part of a series that was cancelled by publisher.

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13
Q

Planche v Colburn (1831)

What factor does this case demonstrate regarding the rule of discharge by performance?

A

Factor: Prevention of full performance

Facts: C-an author was paid quantum meruit for writing a book as part of a series that was cancelled by publisher.

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14
Q

What case demonstrates that regarding discharge of contract by performance-prevention of full performance can temper the harshness of this rule?

A

Planche v Colburn (1831)

Facts: C-an author was paid quantum meruit for writing a book as part of a series that was cancelled by publisher.

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15
Q

The fourth factor tempering the harshness of the rule on discharge by performance?

A

Acceptance of part-performance
Sumpter v Hedges (1898)
Facts: Builder only built 1 of 2 agreed houses and customer HAD to finish build himself-therefore no claim of acceptance by part-performance was allowed.

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16
Q

Sumpter v Hedges (1898)

What does this case demonstrate regarding the rule of discharge of contract by performance?

A

Demonstrates: acceptance of part-performance

Facts: Builder only built 1 of 2 agreed houses and customer HAD to finish build himself-therefore no claim of acceptance by part-performance was allowed.

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17
Q

What case demonstrates that acceptance of part-performance can temper the harshness in the rule of discharge by performance?

A

Sumpter v Hedges (1898)

Facts: Builder only built 1 of 2 agreed houses and customer HAD to finish build himself-therefore no claim of acceptance by part-performance was allowed.

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18
Q

What circumstances will make time a condition of a contract?

A

1) The parties have expressly stated a time in contract.
2) Circumstances suggest time is critical
3) After a party has failed to perform a new time has been specifically agreed.

If none of above are present then time is a warranty to contract.

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19
Q

What cases show that if time is not a condition in a contract, it is considered a warranty instead?

A

Charles Rickards Ltd. v Oppenheim (1950)-Rolls Royce chassis.

Union Eagle Ltd. v Golden Achievement Ltd. (1997)-Flat sale at 5 p.m.

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20
Q

Charles Rickards Ltd. v Oppenheim (1950)

What principle does this case support?

A

That if time is not mentioned in a contract then it is considered a warranty as a pose to a condition.

Facts: Rolls Royce chassis was to have a body built on it by a specified date but this date was not met-buyer was entitled to reject the product.

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21
Q

Union Eagle Ltd. v Golden Achievement Ltd. (1997)

What principle does this case support?

A

That if time is not mentioned in a contract then it is considered a warranty as a pose to a condition.

Facts: Vendor of a flat specified a completion time of 5 p.m. and this was not met-vendor was entitled to reject the offer given 10 minutes late.

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22
Q

What act and section provides that contracts with consumers should be completed within a reasonable time where it is not specifically stated?

A

CRA 2015 s52

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23
Q

CRA 2015 s52

A

Provides that where a time hasn’t been specified in a contract with a consumer then it must be completed within a reasonable time.

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24
Q

What act and section provides that in consumer contracts, if the trader fails to perform within a reasonable time then consumer is entitled to a price reduction?

A

CRA 2015 s54

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25
Q

CRA 2015 s54

A

Provides that if a trader breaches s52 CRA 2015 then consumer is entitle to a price reduction.

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26
Q

What type of term can lead to repudiation of a contract?

A

A condition (not a warranty)

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27
Q

Can breach of a warranty lead to repudiation?

A

No (only damages)

28
Q

What are the circumstances that give rise to a breach of contract?

A

1) renunciation-by a party of their liability under it-like not paying a bill on due date.
2) Impossibility by own act.
3) Total or partial failure of performance.

29
Q

What case is an example of an anticipatory breach?

A

Hochster v de la Tour (1853)

Facts: Hochster agreed to work as a courier on a tour that was due to start in June. He was notified in May that the tour was cancelled.

30
Q

Hochster v de la Tour (1853)

What is this case an example of regarding breached contracts?

A

Principle: anticipatory breach

Facts: Hochster agreed to work as a courier on a tour that was due to start in June. He was notified in May that the tour was cancelled.

31
Q

Anticipatory breach definition

A

When a party to a contract gives notice that it will not be performing or completing the contract.

32
Q

When a party to a contract gives notice that it will not be performing or completing the contract.

A

Anticipatory breach

33
Q

What case sets out when a breach can be treated as an anticipatory breach?

A

Bulk Uruguay (2014)

34
Q

What case is an early example of discharge by frustration?

A

Taylor v Caldwell (1863)

Facts: Hirer of a music hall had paid for advertisements but the hall burned down before the show-contract was frustrated.

35
Q

Taylor v Caldwell (1863)

What is this case an example of?

A

An early example of discharge by frustration.

Facts: Hirer of a music hall had paid for advertisements but the hall burned down before the show-contract was frustrated.

36
Q

What case demonstrates impossibility of performance?

A

Jackson v Union Marine Ltd. (1874)

Facts: Ship that ran aground could not fulfil contract to bear goods.

37
Q

Jackson v Union Marine Ltd. (1874)

What is this case an example of?

A

Frustration-by impossibility of performance.

Facts: Ship that ran aground could not fulfil contract to bear goods.

38
Q

What case demonstrates frustration of contract by impossibility of performance due to medical grounds?

A

Condor v The Baron Knights (1966)

Facts: Contracted drummer was told to only perform 4 times a week.

39
Q

Condor v The Baron Knights (1966)

What is this case an example of?

A

Frustration-by impossibility of performance-medical grounds

Facts: Contracted drummer was told to only perform 4 times a week

40
Q

What case is an example of frustration by contract becoming illegal to perform?

A

DMD Ltd. v James Fraser Ltd. (1944)

Facts: Importing goods that the contract was concerned with became illegal after war.

41
Q

DMD Ltd. v James Fraser Ltd. (1944)

What is this case an example?

A

Frustration of contract by becoming illegal to perform.

Facts: Importing goods that the contract was concerned with became illegal after war.

42
Q

What case is an example of frustration of contract by radical change of circumstance?

A

Krell v Henry (1903)

Facts: Cancelled coronation means no procession passes by hired hotel room-therefore frustrating the contract.

43
Q

Krell v Henry (1903)

What is this case an example of?

A

Frustration due to a radical change of circumstance.

Facts: Cancelled coronation means no procession passes by hired hotel room-therefore frustrating the contract.

44
Q

What case is similar in fact but contrasts with the findings in Krell v Henry (1903)

A

Herne Bay Steamboat v Hutton (1903)

Facts: King’s absence did not frustrate commercial purpose of contract because the boat was hired to view the assembled flotilla.

45
Q

Krell v Henry (1903)

What case is similar in fact but contrasts with the findings in this case?

A

Herne Bay Steamboat v Hutton (1903)

Facts: King’s absence did not frustrate commercial purpose of contract because the boat was hired to view the assembled flotilla.

46
Q

Herne Bay Steamboat v Hutton (1903)

What case is similar in fact but contrasts with the finding in this case?

A

Krell v Henry (1903)

Facts: Cancelled coronation means no procession passes by hired hotel room-therefore frustrating the contract.

47
Q

In what circumstances does frustration not apply?

A

1) Self induced frustration-Maritime National Fish v Ocean Trawlers (1935)
2) Contract becoming less profitable-Davis Contractors v Fareham Council (1956)
3) Frustrating event is foreseeable risk/ mentioned in contract-Amalgamated Investment v John Walker Ltd. (1977)

48
Q

What case demonstrates that self induced frustration does not mean a contract is frustrated?

A

Maritime National Fish v Ocean Trawlers (1935)

Facts: Shipping company wrongly applied licences to its own boats rather than the one it had just hired-within their control so frustration cannot apply.

49
Q

Maritime National Fish v Ocean Trawlers (1935)

What does this case demonstrate?

A

That self-induced frustration does not constitute frustration of contract.

Facts: Shipping company wrongly applied licences to its own boats rather than the one it had just hired-within their control so frustration cannot apply.

50
Q

What case is similar to Maritime National Fish v Ocean Trawlers (1935) in facts but contrasts in findings?

A

Gamerco SA v Missouri Storm (1995)

Facts: Guns N’ Roses concert was cancelled as the venue lost it’s licence which was out of the hands of both parties.

51
Q

Gamerco SA v Missouri Storm (1995)

What case does this contrast with in finding but is similar in facts?

A

Maritime National Fish v Ocean Trawlers (1935)

Facts: Guns N’ Roses concert was cancelled as the venue lost it’s licence which was out of the hands of both parties.

52
Q

What case demonstrates that specific wording may have helped lead to a frustrated contract?

A

The Super Servant 2 (1990)

Facts: D agreed to transport oil rig using either Super Servant 1 or 2 but did not specify-when Super Servant 2 ran aground there could be no frustration as Super Servant 1 could have been used.

53
Q

The Super Servant 2 (1990)

What does this case demonstrate?

A

That in the absence of specific wording a contract may not be frustrated.

Facts: D agreed to transport oil rig using either Super Servant 1 or 2 but did not specify-when Super Servant 2 ran aground there could be no frustration as Super Servant 1 could have been used.

54
Q

What case demonstrates that just because a contract becomes less-profitable does not mean it is frustrated?

A

Davis Contractors v Fareham Council (1956)

Facts: Labour shortages increased building costs for houses built for council-but this did not frustrate the contract.

55
Q

Davis Contractors v Fareham Council (1956)

What does this case demonstrate?

A

That a contract becoming less profitable does not mean it is frustrated.

Facts: Labour shortages increased building costs for houses built for council-but this did not frustrate the contract.

56
Q

What case demonstrates that a foreseeable event or an event being mentioned in a contract means that frustration of contract may not apply?

A

Amalgamated Investment v John Walker Ltd. (1977)

Facts: After being purchased a building’s value decreased because it was listed-this is a foreseeable risk for old buildings.

57
Q

Amalgamated Investment v John Walker Ltd. (1977)

What does this case demonstrate?

A

A foreseeable event or one that is mentioned in contract means contract is not frustrated.

Facts: After being purchased a building’s value decreased because it was listed-this is a foreseeable risk for old buildings.

58
Q

What case demonstrates that the courts are, in general, reluctant to find there has been frustration of contract?

And why?

A

Armchair Answercall v People in Mind (2016)

Facts: Franchisees refused to sign up to new organisation structure-not considered frustration because there was

  • time lapse of 5 months
  • no one single frustrating event.
59
Q

Armchair Answercall v People in Mind (2016)

What does this case demonstrate?

A

Courts are generally reluctant to find that contract has been frustrated.

Facts: Franchisees refused to sign up to new organisation structure-not considered frustration because there was

  • time lapse of 5 months
  • no one single frustrating event.
60
Q

What are five conditions for frustration?

To whom are they attributed?

What case were the comments derived from?

A

Bingham LJ in The Super Servant 2

1) Mitigate-law’s insistence on literal performance.
2) Not to be invoked lightly-as frustration effectively ends contract.
3) Frustration caused contract to end.
4) External event
5) Without blame-or fault of party seeking to rely on it.

61
Q

What statute seeks to resolve situations where frustration has arisen?

A

Law Reform (Frustrated Contracts) Act 1943

62
Q

What are the key sections of the Law Reform (Frustrated Contracts) Act 1943?

A

s1(2)-Money paid before frustrating event is liable to refund.

  • Money that was due before frustrating event no longer owed.
  • If party that was owed money incurs expenses then this is recoverable-limited to amount described above.

s1(3)-Prevention of the unjust enrichment of one party.
(If one party benefits before frustrating event this is the recoverable)

s1(4)-additional costs may be recoverable such as work or services performed personally between parties.

63
Q

s1(2) Law Reform (Frustrated Contracts) Act 1943

A

s1(2)-Money paid before frustrating event is liable to refund.

  • Money that was due before frustrating event no longer owed.
  • If party that was owed money incurs expenses then this is recoverable-limited to amount described above.
64
Q

s1(3) Law Reform (Frustrated Contracts) Act 1943

A

s1(3)-Prevention of the unjust enrichment of one party.
(If one party benefits before frustrating event this is the recoverable)

BP Exploration v Hunt (No. 2) (1979)

65
Q

s1(4) Law Reform (Frustrated Contracts) Act 1943

A

s1(4)-additional costs may be recoverable such as work or services performed personally between parties.

66
Q

What case demonstrates the harshness of the rule on frustrated contracts historically?

A

Parodine v Jane (1647)

Facts: Army invading a tenants land didn’t mean he didn’t have to pay rent!

67
Q

Paradise v Jane (1647)

A

Example of: harshness of rule on discharge by frustration historically.

Facts: Army invading a tenants land didn’t mean he didn’t have to pay rent!

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