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Discharge of Contract : - Coggle Diagram
Discharge of Contract :
Agreement :
S.63 If the parties to a contract agree to substitute a new contract for it, or to rescind or alter, the original contract cannot be performed
Novation
-all parties agree to substitute a new contract for the original contract
-both parties agree to discharge old contract and replace it with new one
Alteration
:check:Changing the term of contract
:check:The consent of both parties is needed to make the alteration valid
-
Remission
S.64 Promisee may dispense with or remit wholly or in part, the performance of a promise
eg: Kerpa Singh v. Bariam Singh
Frustration
When there is a change in the circumstances which renders the performance of contract becomes impossible or unlawfull
- Destruction of the Subject Matterof contract
:check:Impossible to perform due to destruction of an essential part of the contract or by death/illness of someone essential to the performance of the contract
eg: Taylor v Caldwell
- Non-occurance of a particular event (Object of contract defeated)
:check: of an event which was the sole reason for entering into contract, so it makes the performance pointless
eg: Krell v Henry
-
- Death or incapacity of personal service
:check: Causing the party to be unable to fulfill their obligations
eg: **Robinson v Davidson
- Change of Law (Supervening illegality)
:check: If a new law comes into force that makes continued performance of the contract illegal
eg: **Lee Kin v Chan Suan Eng
Effects of Frustration
:explode: S.57(2) Agreement void
:explode: S.57(3) Compensation must be paid by the promisor to the promisee for loss through non-performance of act known to be impossible or unlawfull
:explode: S.66 Any advantage received under a void agreement must be restored or compensation be made
Performance
A contract must be exact & precise, and should be in accordance with what the parties had promised
S.39 Promisor not responsible for non-performance and does not lose his rights under the contract if promisee fail to accept the offer made by promisor to perform the contract
Conditions for a valid tender performance
:check: Unconditional
:check: Proper time and place
:check: The other party can ascertain that the promisor is able and willing to perform his promise
:check: The other party has reasonable opportunity to check the thing delivered
S.49 When a promise is to be performed on a certain day and the promisor has not undertaken to perform it without application by the promisee, it is the duty of promisee to apply for performance at a proper place and within the hours of business