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Contract Law - Vitiation > Discharge > Flashcards

Flashcards in Discharge Deck (21):

What are the 3 types of discharge?

Discharge by performance
Discharge by agreement
Discharge by breach


What is discharge by performance?

A party is discharged when it has precisely and imperfectly fulfilled their obligations


What case is related to discharge by performance?

Cutter v Powell


Facts of Cutter v Powell

A seaman died mid voyage
His wages were supposed to be paid at the end of the voyage
His widow attempted to claim his wages


Outcome of Cutter v Powell

Widows claim failed as the seaman had not completed his obligations. Therefore couldn't be discharged by performance and she was not entitled to money


What is s13-15 of the sale of goods act

It is related to discharge by performance and states that a buyer has the right to reject goods if the standard doesn't apply


What are the exceptions to discharge by performance...

Partial performance
Substantial performance
Prevention of performance
Tender of performance
Time of performance


What type of obligations do the exceptions apply to?

Serverable obligations


Explain partial performance

If the whole contract has not been breached payment can be expected for part of the performance


What case is relevant to part performance?

Robert v Havelock


Facts of Robert v Havelock

C was repairing a ship
Contract did not say when payment was to be made
Before completing he requested payment of work to date
D refused


Outcome of Robert v Havelock

Because the contract did not state when payment was to be made there was no breach.
C could expect money for partial performance before completion


Explain substantial performance...

Contract may be enforced or damages are awarded for the incomplete performance (price of contract - cost of incomplete performance = damages awarded)
Problem for courts - what is substantial?


What is prevention of performance?

Where one partly wrongly prevents the other party from fulfilling the contract then the discharge rule doesn't apply


Explain tender of performance

If a party cannot complete obligations without the cooperation of the other party then they may be able to apply for this
Other party accepts or rejected
If rejected they will be discharged


Explain time of performance

Discharged based on them if contract contains a 'time is of the essence' this often depends on subject matter e.g with perishables


explain discharge by agreement

Consideration is necessary
With executed consideration new consideration is needed, or it need to be written in a deed or one party can give a waiver


What are the two types of discharge by breach?



What is anticipatory breach?

One party indicates their intention not to perform their contractual obligations. This may be explicitly or implicitly implied


Explain repudiatory breach

This is a serious breach which releases the other party from duties and entitles them to compensation


If there has been a repudiatory beech what choices are available to the innocent party?

Affirm the breach = accept it and get party to carry out obligations
End contract = repudiation of contract