Week 10 Lecture slides

Week 10 Lecture slides - Privity of Contract LAW101 Law,...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
1 LAW101 Law, Business Week 10 Discharge and Remedies Privity of Contract General Rule 9 Only parties to the contract can sue or be sued on the contract Beswick v Beswick Privity of Contract But compare this with: Trident General Insurance Co Ltd v McNiece Bros Pty Ltd (1988) Concept of discharge • Just as a contract can be created, it can be discharged or terminated. Discharged means that the parties are no longer obliged to be ready, willing or able to perform their obligations. Terminating the Contract Discharge Performance Agreement Frustration Operation of law Lapse of time By virtue of a term Breach Discharge by performance • Each party performs their contractual obligations. • Obligations must be performed completely & exactly (bar ‘trivial’ defects).
Background image of page 1

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

View Full DocumentRight Arrow Icon
2 Discharge by performance Actual Performance • The parties must carry out as closely as practicable the terms of the contract: [1921] • but compare this with: Shipton, Anderson & Co v Weil Brothers & Co [1912] Discharge by performance Partial Performance • Generally, payment does not automatically follow unless the contract is divisible (a matter of construction): Cutter v Powell (1795) although there are exceptions: – if there has been free and willing acceptance of partial performance by the party receiving the benefit; – there has been substantial performance and the cost of rectification is small: Hoenig v Isaacs [1952]; – if one party is prevented from performing. Discharge – by agreement • Any agreement made about changing the terms of an existing contract may itself amount to a new contract, and must satisfy all legal requirements to be enforceable eg consideration/deed, writing where needed Discharge by frustration Doctrine of frustration • where unforeseen events occur after the contract is made, without the fault of either party, making the contract impossible to carry out Discharge by frustration Elements: i. a supervening event must cause a fundamental change to the nature (not just expense or ii. event must not be caused by fault of either party iii. event not contemplated/provided for in contract iv. would be unjust to hold parties to agreement Discharge by frustration Has been applied in following situations: • Physical impossibility - subject matter destroyed Taylor v Caldwell (1863) • Physical impossibility – contract of personal service • Change in law – performance impossible Horlock v Beal [1916] • An event, basic to contract, does not take place Krell v Henry [1903]
Background image of page 2
3 Discharge by frustration
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/16/2010 for the course LAW 121 taught by Professor Aresa during the Spring '08 term at Uni. West.

Page1 / 8

Week 10 Lecture slides - Privity of Contract LAW101 Law,...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online