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Contract - Discharge
Discharge of Contract: Performance and Frustration
| Question | Answer |
|---|---|
| What is the general rule for performance of a contract? | performance must match obligations exactly 'mirror image' |
| Re Moore and Landauer | performance didn't match obligations exactly allowing repudiation of the contract |
| What are the exceptions to the rule that performance must match obligations exactly | divisible contracts, substantial performance, prevention of performance, vicarious performance |
| Cutter v Powell | Entire contract so couldn't claim for any £ from part performance |
| Hoenig v Isaacs | Substantial performance - builders can claim for £ - amount required to finish |
| Bolton v Madaheva | not substantial performance - as the boiler work was done badly and made it dangerous |
| Planche v Colburn | Prevention of performance - D refused to publish series after C wrote half of it already - £ recieved reflected work taken by author |
| Welby v Drake | Vicarious performance case * lmk what happened here Tom |
| What is vicarious performance | D entitled to full amount unless personal performance is demanded by the terms or nature of contract (Weby v Drake) |
| What is frustration of a contract? | contract incapable of being performad or has become radically different |
| Krell v Henry | contract frustrated because it became radically different - flat and coronation case |
| Herne Bay Steamboat Co v Hutton | Contract not frustrated because they were still able to go on boat ride - not radically different - boat coronation case |
| Taylor v Caldwell | Frustration occurs if subject matter is destroyed - music hall burned down (+ court discussed that frustratable events can't be self-induced) |
| When may frustration occur? | Death, illness, incarceration, subject matter destroyed, impossible, radically different, illegality |
| Davis v Fareham | Extra delay and cost is not sufficient to frustrate a contract (building contract) |
| Super servant two | Extra delay and cost is not sufficient to frustrate a contract (could have breached other contract - they had two oil rig transporters) |
| Gamerco v ICM | frustration may occur due to illegality (authorities closed stadium down) |
| Hare v Murphy Brothers | Frustration may occur due to incarceration |
| What statute outlines what remedies are available for frustration? | Law Reform (Frustrated Contracts) Act 1943 |
| What remedies are available for frustration of a contract? | you can claim for: money paid b4 event, debt, expenses incurred for purposes of contract, any valuable benefit a party acquires |