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Contract > Discharge > Flashcards

Discharge Flashcards

1
Q

How may a contract be discharged?

A

Performance;
Expiry;
Agreement;
Breach; or
Frustration.

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2
Q

How may a contract be discharged by expiry?

A
  • term incorporating end date
  • occurrence of an event
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3
Q

What is the entire obligations rule?

A

Contractual obligation is discharged by a complete performance of the obligation

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4
Q

What are the exceptions to the entire obligations rule?

A
  • Acceptance of partial performance
  • Substantial performance
  • Divisible obligations
  • Wrongful prevention of performance
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5
Q

What is the effect if there is acceptance of partial performance?

A

Claimant entitled to reasonable sum so Defendant is not unjustly enriched

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6
Q

What is considered when deciding if there has been substantial performance?

A

Whether defect goes to root of the contract

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7
Q

What are the innocent party’s options where there has been wrongful prevention of performance?

A

Can sue for damages for breach of contract or
Claim a quantum meruit

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8
Q

What is a defence to the entire obligations rule?

A

Tender of performance

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9
Q

What is tender of performance?

A

Promisor unconditionally offered to perform obligations but promise refused to accept

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10
Q

How may a contract be discharged by agreement?

A

subsequent binding contract
operation of term in original contract

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11
Q

What is required to discharge a contract where there is a subsequent binding contract?

A

accord (agreeement to realease) +
satisfaction (consideration)

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12
Q

How can a contract be discharged by subsequent binding contract where there was no consideration?

A

made by deed

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13
Q

How may a contract be discharged by the operation of a term in the original contract?

A
  • condition precedent
  • condition subsequent
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14
Q

What is a repudiatory breach?

A

Breach of term that is a condition or innominate term

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15
Q

What is anticipatory breach?

A

Party indicates they will not perform obligation in advance of performance date

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16
Q

What are the innocent party’s options for an anticipatory breach?

A

has right to accept renunciation and treat contract as terminated

17
Q

Which rights/obligations are extinguished when terminating a contract for repudiatory breach?

A

Primary
prospective

18
Q

What is the biggest risk when terminating a contract for breach?

A

Wrongful termination

19
Q

What is the right of election?

A

Innocent party of repudiatory breach can choose to terminate

20
Q

What is required for the right to elect?

A

Innocent party must make decision known to defaulting party

21
Q

Can an innocent party still claim damages for breach if it affirms the contract?

A

Yes

22
Q

How is a contract affirmed?

A

clear and unequivocal commitment to continue contract

23
Q

What are the limitations to affirming a contract?

A

a) Cooperation of breach party is required or
b) Innocent party has no legitimate interest, financial or otherwise in affirming.

24
Q

How can a defendant show that the claimant has no legitimate interest in affirming a contract?

A

i. Damages would be an adequate remedy for C
ii. Election to keep contract alive would be unreasonable

25
Q

What is frustration?

A
  • Beyond the control of either party
  • After formation of contract
  • Renders performance radically different to what was agreed.
26
Q

What might render the contract as radically different?

A
  • Performance is impossible
  • Performance is illegal
  • Common purpose of contract is frustrated
27
Q

What might make performance impossible?

A

total/partial destruction of some object necessary to perform
Death or illness
Unavailability/temporary unavailability

28
Q

What are the limits on frustration?

A
  • Self-induced frustration
  • Foreseeable events
  • Express contractual provision
29
Q

What is the effect of frustration according to the law reform act?

A
  • Money paid before frustrating event can be recovered
  • Money that should have been paid before the frustrating event no longer needs to be paid
  • Expenses incurred by payee can be recovered out of total sum paid/payable before event
30
Q

When recovering expenses incurred for frustration, what is the cap?

A

Actual expenses incurred
Amount paid/payable prior to event
Just

31
Q

What does s1(3) of the law reform act say about recovering money where the benefit conferred by the contract was non-monetary?

A

Party who has gained valuable benefit under contract before frustrating event may be required to pay just sum for it

Contract (12 decks)

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