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DISCHARGE OF CONTRACT - Coggle Diagram
DISCHARGE OF CONTRACT
Agreement
Remission
S.64 state Promisee may dispense with or remit wholly or in part, the performance of a promise.
CASES : KERPA SING V. BARIAM SING
S.63 state 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
- Both parties are agree to discharge old contract and replace it with new one.
- All the parties agree to substitute a new contract for the original contract.
ALTERATION
- Changing the term of contract.
- The consent of both parties are needed to make the valid alteration.
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Performance
A contract must be exact & precise and should be in accordance with what the parties has been promised.
S.39 state the promiser not responsible for any non-performance & do not lose his rights under the contract if the promisee fail to accept the offer made by the promisor to perform the contract.
Conditions for a valid tender performance
:explode:Proper Time and Place
:explode:The other party has reasonable opportunity to check the thing delivered.
:explode:Unconditional
:explode: The other party can ascertain that the promisor is able & willing to perform his promise
S.49 state 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 & within the hours of business
FRUSTRATION
When there is a change in the circumstances which renders the performance of contract becomes impossible or unlawfull
:star: S.57 (1) states At the time contract is made
:star:S.57 (2) state After the contract has been made
1. Destruction of the Subject Matter of 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
Example : Taylor v Caldwell
- Non-occurance of a particular event (Object of contract defeated)
:red_flag: An event which was the sole reason for entering into contract, so it makes the performance pointless.Example : Krell v Henry
- Death or incapacity of personal service :fire: It caused the party to be unable to fulfill their obligations.
Example : Robinson v Davidson
- Change of Law (Supervening Illegality)
:smiley: If a new law comes into force, so that it makes continued performance of the contract illegal
Example : Lee Kin v Chan Suan Eng
Effects of Frustration
:recycle: S.57 (2) Agreement are void
:recycle: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.
:recycle:S.66 state Any advantage received under a void agreement must be restored or compensation be made.