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21 Cards in this Set

  • Front
  • Back

Ways in which a contract is terminated

-Performance by the parties of their obligations


-By agreement


-Frustration


-Breach of Contract

Performance by the parties of their obligations/By agreement

The parties may insist only on exact/whole performance

Bolton v Mahadeva [1972]

Rule of Law:


Case info:

Performance by the parties of their obligations/By agreement

The parties are bound by the doctrine of substantial performance - Quantum Meruit - if the party allegedly in breach has substantially performed they may be entitled to be paid for the work completed



Hoenif v Isaacs [1952]

Rule of Law:


Case info:

Performance by the parties of their obligations/By agreement

The parties may accept/affirm partial performance

Sumpter v Hedges [1898]

Rule of Law:


Case info:

Performance by the parties of their obligations/By agreement

The parties claiming breach cannot have acted in prevention of performance by the promisee

Startup v MacDonald [1843]

Rule of Law:




Case info:

Performance by the parties of their obligations/By agreement

The parties may agree to end the contract; waive certain terms or even agree a completely new contract to replace the old

Definition of Breach of contract

Non-performance or not precise performance of one or more contractual obligations without lawful excuse




Where a party does not perform one or more of his contractual obligations, the court takes a number of approaches in determining what remedy to award for breach of contract

Breach of a condition - a major term

The innocent party has two choices:


- He can terminate the contract for a repudiatory or fundamental breach and claim damages


- Affirm the contract and sue for damages

Poussard v Spiers [1876]

Rule of Law:


Case info:

Breach of a Warranty

The innocent party can only sue for damages


Breach of a minor contractual term


How does the court decide whether a breach of a term is a breach of condition or warranty?


- Is the term classified as a term by statue? (ss 12-15 Sale of Goods Act 1979)


- What was the parties' intention at the time the contract was made?


If the court cannot decide, it may be that the term is pronounced an innominate term

Bettini v Gye [1876]

Rule of Law:


Case info:

Innominate term

A more modern approach: the court does not classify the term as either a condition or warranty according to what it thinks the parties intended when they made the contract




Instead they look at the effect of its breach and its impact on the contract as a whole

Hong Kong Fir Shipping v Kawasaki Kisen Kaisha [1962]

Rule of Law:


Case info:

Anticipatory Breach

This is when the breaching party signifies in advance that he has no intention of carrying out the contract


The innocent party can elect to terminate the contract and sue for damages immediately


He need not wait until the day for performance arrives


He may choose to wait for the day for performance to see if the other party changes his mind

Hochster v De la Tour [1853]

Rule of Law:


Case info:

Frost v Knight [1872]

Rule of Law:


Case info:

Avery v Bowden [1856]

Rule of Law:


Case info: