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Discharge Of Contract - Coggle Diagram
Discharge Of Contract
Performance
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Exceptions:
Divisible/severable contracts - If the contract can be seen as being made up of different parts rather than 1 single obligation. If each charge can be separately discharged then the strict rule will not apply. (Ritchie v Atkinson)
Voluntary acceptance of part performance - Where 1 party performs part of the contract and the other shows willingness to accept this. Must be a genuine choice in accepting the part performance. (Sumpter v hedges)
Substantial performance - where a party has done substantially what is required but the other party refuses to pay. (Hoeing v Isaac)
Prevention of performance - a party prevents the other from carrying out their obligations. (Planche v Colburn)
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Breach
General Rule - A contract is breached when one party: does not perform at all (actual) or indicates in advance they will not perform as agreed(anticipatory).
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Anticipatory Breach - Where a party indicates in advance they will not be performing as agreed. The contract can be considered repudiated. (Hochester v De La Tour)
The other party can: sue for breach of contract or wait for the agreed time and sue if it does not take place.
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Frustration
Defined as - where an unforeseen event either renders contractual obligations impossible or it radically changes the parties purpose for entering the contract.
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Frustrating events:
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Illegality
When a change in the law after a contract is made makes the performance of the contract illegal - this will amount to frustration. (Fibrosa)
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