LW
Lecture 4 Vitiating Factors (Dr Lone).pdf

Lecture 4 Vitiating Factors (Dr Lone).pdf - Lecture 4(LW...

Info icon This preview shows pages 1–6. Sign up to view the full content.

1 Lecture 4 (LW 2903) Contract Law Discharge of Contract & Vitiating Factors LW2903 Business and Law (DR LONE)
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

2 Discharge of a Contract (1) Discharge of a contract ’ refer to the situations in which the contract is brought to an end. (A contract is said to be discharged when it comes to an end). When a contract is discharged, then parties to contract have no further obligations or rights under the contract. A contract may be discharged by the following ways: 1. Discharge by performance 2. Discharge by agreement 3. Discharge by Breach (Repudiatory or Anticipatory Breach) 4. Discharge by frustration LW2903 Business and Law (DR LONE)
Image of page 2
1. Discharge by Performance A contract becomes discharged through performance where both parties fully performed their contractual obligations. If one party performs the contractual obligations fully where as other party does not, the party that has fully performed its obligations is said to have discharged its contract, and will have right of action for loss suffered against the non-performing party Unless otherwise agreed, the general rule is that if a party only partially performs its obligations it may lose the right to claim any payments for the completed work (Cutter v Powell (1795) 6 Term 320, 101 ER 573 ) This general rule is mitigated in following circumstances (Exceptions) - Divisible/Severable contracts Substantial performance Acceptance of partial performance and Performance prevented by the promisee etc. LW2903 Business and Law (DR LONE) 3
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

2. Discharge by Agreement When both parties agree to bring the contract to an end and release each other from their contractual obligations 3. Discharge by Breach (Repudiatory or Anticipatory Breach) A party is said to breach the contract, where a party does not perform its part of obligations at the actual time of performance (Repudiatory breach) When a party expresses its intention not to perform its obligations before its performance is due (Anticipatory Breach) 4. Discharge by Frustration A contract is said to be frustrated where there is a change in circumstances, after the contract was formed. The change is not the fault of either of the parties, which renders the contract impossible to perform. Each party is discharged from future obligations under the contract and none of the party may sue for breach. LW2903 Business and Law (DR LONE) 4
Image of page 4
5 Vitiating Factors A contract could be undermined even when all the elements for the formation of contract have been fulfilled Vitiating factors - are those factors the existence of which will cripple or invalidate the contract.
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern