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Discharge Of Contract - Coggle Diagram
Discharge Of Contract
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Original strict rule was modified for being too harsh;
Paradine v Jane 1647; P sued J for rent. J had been forced off the land by an invading army. No excuse, he was still liable for rent.
RULE NOW: If there is an unforeseeable, intervening event which makes the performance impossible, then the party who is unable to perform can't be sued for breach of contract.
3 main types of frustration - IIR;
1) Impossible: The event makes performance impossible.
2) Illegal: Performance becomes illegal.
3) Radical Change: The contract becomes pointless.
Impossibility (DUP);
Contract becomes impossible to perform
a) Subject matter is DESTROYED.
b) Subject matter becomes UNAVAILABLE.
c) The PERSON becomes unavailable.
Subject matter DESTROYED;
Taylor v Caldwell; Music hall was hired for an event. Hirer had spent money advertising event when the hall burnt down before it. It was held that the contract was frustrated therefore the contract came to an end. The hirer couldn't get his costs back.
Subject matter UNAVAILABLE;
Jackson v Union; Owner of ship contracted charter to sail ship full of cargo. Cargo was delayed and ship ran aground. Owner of cargo employed someone else to deliver the goods. It was held that the day was so long as to put an end to the contractual obligations. Loss from the 'perils of the sea'. Contract broken as the day was so long that it made the goods completely unavailable. Meant owner of ship couldn't sue. Reasonable to seek alternate delivery.
PERSON unavailable;
Robinson v Davidson; Pianist made a contract to person. It was held that the contract was conditioned to her being well and her sickness frustrated the contract.
Also includes failure to perform on medical advice...
Condor v Baron knights; 16 yr old agreed by contract to play drums for the d's band for 7 nights per week for 5 years. C suffered mental breakdown and was told by his doctor that he shouldn't perform more than 4 nights per week.
It was held that his medical condition made it impossible for him to perform his contracted obligation so contract was frustrated.
Illegality;
Change in the law makes contract illegal to perform.
Denny v James; Contract for a type of wood was frustrated when an act was passed banning the sale of it.
Contract for sale and purchase of timber contained an option to purchase a timber yard. Trading under the agreement became illegal. It was held that the order had frustrated the contract so the option couldn't be exercised.
Radical Change In Circumstance;
Contract isn't impossible BUT the intervening event has made it pointless. Usually involves some sort of 'event' that is central to the contract but which then doesn't happen.
Krell v Henry; Man hired a hotel room in order to view king's procession. Prince became ill and the coronation was postponed. It was held that the contract was frustrated even though the room technically still could have been used.
Contrast with...
Herne v Hutton; Hutton hired a boat in order to see the fleet when the king reviewed it as part of his coronation celebration. He claimed king was ill and didn't attend he didn't have to pay the king. It was held that the change in the main event did not frustrate the contract as all that was missing was the kings presence which wasn't enough.
Breach of contract;
When a party fails to do something that they were contracted to do.
Means that the other party is able to sue for breach. However, not all types of breach allows the other party to sue for damages. Not all types of breach allow the contract to be terminated.
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