Termination Of A Contract

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Termination Of A Contract by Mind Map: Termination Of A Contract

1. Discharge of a Contract

1.1. Relates to where the contract is brought to an end.

1.2. Where it's discharged, each party is feed from continuing obligations under contract.

1.2.1. Can be discharged by the following Performance Frustration Agreement Breach

2. Discharge by Performance

2.1. Precise Performance

2.1.1. If both parties performed what they agreed under a contract, discharged. Re Moore & Co Ltd V Landauer Co Ltd (1921) 1. supplier agreed to 30 tins. 2.shipment arrived, 24 tins. 3. buyers could reject since not contract of description (no performance)

2.1.2. Performance must be strictly accordance with terms of contract to be a discharge.

2.2. Fundamentals of Performance

2.2.1. Time for performance keep to the terms of contract and complete within specific timeframe (time is of the essence) Charles Rickards V Oppenheim 1. RR made within 7 months 2. Period expired w/o delivery, purchases waited 3 months 3. Served notice requiring completion within 4 weeks failing which he cancel order. 4. Court held that purchaser had waiver rights, make time of essence and treat contract as discharged if no performance made within period of notice. if not performed within agreed time, injured party may refuse and treat contract as discharged by breach

2.2.2. Payment Payment of a smaller amount is not discharge, unless it is made at an earlier date or in a different manner that prescribed by contract Rule in Pinnel's case

2.2.3. Complete Performance The contract price is not payable till complete performance. Cutter V Powell (1785) 1. D employed P as second mate of ship sailing from Jamaica to Liverpool 2. P died after completed 3/4 3. Court held he was entitled nothing unless completed No right demand proportionate payment for partially completed work Divisble Contracts Where the agreement provides complete performance by one party is a condition precedent to contractual liability on part of the party Part of the consideration of one party is set off against part of the performance of the other. Complete Performance Prevented One person performs service for another, and other breaks contract, person performing services usually sue upon quantum meriut (what one has earned) to recover amount earned by labours. Partial Performance Accepted Party to whom promise of performance was made receives benefit of partial performance of promise under circumstances he is able to accept/rejct if he accepts work, obliged to pay a reasonable amount for the benefit received