CONTRACT LAW REVIEW NOTES
DISCHARGE OF CONTRACT
Discharge or termination of a contract is where the rights and
obligations under a contract are brought to an end.
Six ways to discharge a contract, resulting in termination of the rights
and obligations of the parties created by the contract:
1. Performance
2. Express agreement
3. Reason of a term in the contract
4. Operation of law
5. Breach
6. Operation of the doctrine of frustration
Discharge by performance
Once each party to the contract performes their obigations each party
is discharges and the contract is at an end.
Performance must be exact and complete There is a notable
distinction between actual and attempted performance, and
performance must be exact and complete. Partial performance does
not discharge the contract. Cutter v Powell; Re Moore & Co Ltd and
Landauer & Co
There is a notable distinction between actual and attempted
performance, and performance must be exact and complete. Partial
performance does not discharge the contract.
A contracting party is required to completely perform their
obligations if they were to obtain any benefit under an entire
contract. Sumpter v Hedges
The total performance rule will be modified if the contract is
divisible into parts, rather than non-divisible in the performance of
its entirety.
The doctrine of ‘substantial performance’ allows the contract to be
discharged with a damage claim for the defect. Hoenig v Isaacs
[1925]
Hoenig v Isaacs: The question of quantum meruit only arises when
there is a breach or failure of performance which goes to the very
root of the matter. On any lump sum contract, if the work is not
, substantially performed and there has been a failure of performance
which goes to the root of it, as, for instance, when the work has only
been half done, or is entirely different in kind from that contracted
for, then no action will lie for the lump sum.
It was held that Isaacs freely accepted the work therefore he had to
pay.
The doctrine of substantial performance also reduces the potential
hardship of the total performance requirement in appropriate cases.
If one party substantially performs their obligations under a
contract, the other party must do likewise, and the rights of the
latter are restricted to an action in damages for losses accruing from
the former’s failure to completely perform their contractual
obligations.
The rule if substantial performance is acceptable when:
• Wrongdoing party has not abandoned the work/supply
• Defects under contention are minor
DISCHARGE OF CONTRACT
Discharge or termination of a contract is where the rights and
obligations under a contract are brought to an end.
Six ways to discharge a contract, resulting in termination of the rights
and obligations of the parties created by the contract:
1. Performance
2. Express agreement
3. Reason of a term in the contract
4. Operation of law
5. Breach
6. Operation of the doctrine of frustration
Discharge by performance
Once each party to the contract performes their obigations each party
is discharges and the contract is at an end.
Performance must be exact and complete There is a notable
distinction between actual and attempted performance, and
performance must be exact and complete. Partial performance does
not discharge the contract. Cutter v Powell; Re Moore & Co Ltd and
Landauer & Co
There is a notable distinction between actual and attempted
performance, and performance must be exact and complete. Partial
performance does not discharge the contract.
A contracting party is required to completely perform their
obligations if they were to obtain any benefit under an entire
contract. Sumpter v Hedges
The total performance rule will be modified if the contract is
divisible into parts, rather than non-divisible in the performance of
its entirety.
The doctrine of ‘substantial performance’ allows the contract to be
discharged with a damage claim for the defect. Hoenig v Isaacs
[1925]
Hoenig v Isaacs: The question of quantum meruit only arises when
there is a breach or failure of performance which goes to the very
root of the matter. On any lump sum contract, if the work is not
, substantially performed and there has been a failure of performance
which goes to the root of it, as, for instance, when the work has only
been half done, or is entirely different in kind from that contracted
for, then no action will lie for the lump sum.
It was held that Isaacs freely accepted the work therefore he had to
pay.
The doctrine of substantial performance also reduces the potential
hardship of the total performance requirement in appropriate cases.
If one party substantially performs their obligations under a
contract, the other party must do likewise, and the rights of the
latter are restricted to an action in damages for losses accruing from
the former’s failure to completely perform their contractual
obligations.
The rule if substantial performance is acceptable when:
• Wrongdoing party has not abandoned the work/supply
• Defects under contention are minor
