... LEGAL FRAMEWORK I LECTURE NOTES Note to reader: these lecture notes are compiled for the purposes of the unit LAW1100 Legal Framework I and are selective in nature and scope. The notes are for academic purposes only. Lecture 10 Law of Contract: Discharge of the Contract INTRODUCTION In this lecture, we will first discuss a number of ways in which a contract can be discharged (that is, brought to an end), including the right of termination for major breach of contract. We will then consider the issue of breach of contract in further detail, with a focus on the common law remedy of damages together with the principles by which the Courts can assess damages. We will then discuss the equitable remedies for breach, chiefly specific performance and injunctions, and conclude by considering the issue of expiration of time and the loss of the right to sue. On successful completion of this lecture, you should (within the scope of the course) be able to: identify the ways in which a contract may be discharged describe discharge of a contract by performance describe discharge of a contract by agreement describe discharge of a contract by operation of law describe discharge of a contract by breach describe the remedy set respectively available for breach of condition and warranty describe and understand the remedy of damages and how the quantum of damages is assessed by the Courts describe the principle of causation describe the principle of...
Words: 4401 - Pages: 18
...What is meant by discharge of contract? Discharge of contract relates to the circumstances in which the contract is brought to an end. Where a contract is discharged, each party is freed from their continuing obligations under the contract. A contract may be discharged in one of the following ways: * Discharge by Performance * Discharge by Breach * Discharge by Agreement * Discharge by Frustration Q.2. Discuss the various ways by which the contract may be discharged, with special reference to the doctrine of frustration. A contract becomes discharged through performance where both parties have fully performed their contractual obligations. If one party does not fully perform the contract this will amount to a breach of contract and the other party may have a claim for damages unless the contract has been frustrated. A further exception exists where a court is satisfied that substantial performance is present. The court may then award the contractually agreed price and deduct sums to reflect the amount not performed. Where one party freely agrees to accept partial performance, then a sum is payable for the work completed. The main focus is on free acceptance. Where a party is willing to perform and tries to tender performance but the other party does not accept the performance then the party seeking to tender performance is discharged from the contract and the non accepting party is liable in damages for non acceptance. Secondly a contract may be discharged...
Words: 678 - Pages: 3
...Key Terms of prepaid export contract Joint Stock Company “Oil Company Rosneft” (“Rosneft”), Sinopec Group (“Sinopec”), and Industrial and Commercial Bank of China (“ICBC”) as financing partner of Sinopec, collectively referred to as the Parties, willing to develop their successful cooperation set forth these Key Terms of the prospective Prepaid Supply Transaction (hereunder the “Transaction”). 1. The Seller and the Buyer will enter into a prepaid export contract (the “Contract”) which will consist of the Export Contract (setting out the agreed sale and delivery terms) and the Prepayment Addendum (setting out the agreed prepayment terms). The Export Contract will be on the following terms: |Seller |Rosneft or a subsidiary of Rosneft (the "Seller") | |Buyer |Unipec Asia company limited (the "Buyer"),a wholly owned subsidiary of Sinopec | |Main Product |Russian Export Blend Crude Oil (“REBCO”) and/or Eastern Siberia - Pacific Ocean Oil (“ESPO”) . | |Quantity |Subject to the term of delivery up to 100 million tons total, ratably delivered during the term of the Contract spitted| | |as follows: | | |64 million...
Words: 2039 - Pages: 9
...Tom Carter CHAPTER 9: THE END OF THE CONTRACTUAL RELATIONSHIP Purpose: To examine the four ways contracts come to an end To discuss remedies for failed or improper performance General rule: Every contract comes to an end in one of four ways: 1. Performance 2. Breach 3. Discharge 4. Frustration 1. PERFORMANCE Occurs when the parties do what they agreed to do But, when is a contract fully performed? Must a contract be fully performed in each and every particular? Or are there some acts of performance that fall short in some detail but still amount to binding performance? It depends on the nature of the term that is not performed: There are two types of contractual terms: warranties and conditions Warranty: a minor term that is not essential to the integrity of the contract Failure to perform a warranty does not excuse the other party form performing, but does give them the right to sue for damages caused by that breach. Condition: a major term that is essential to the integrity of the contract Failure to perform a condition excuses the other party from performing and gives them the right to sue for damages for breach of contract. NOTE: Failure to perform a minor part of a major term is called substantial performance. Eg. A and B have a contract A fails to perform a minor part of a term that amounts to a condition B is still bound to perform ...
Words: 1854 - Pages: 8
...[pic] LAC 4443 COMMERSIAL LAW INDIVIDUAL ASSIGNMENT ‘SHARIAH LAW OF CONTRACT’ |NAME |HANNA FAUZANA BINTI HAMDAN | |ID NUMBER |1110*** | |GROUP |TMC 2 | |LECTERUR’S NAME |MADAM MAHERAN BINTI MOHAMED | ‘Aqd’ was conjunction consent (tender expression on the one hand that held a contract) with qabul (expression of acceptance by other) which give effect to a contract. Qabul affinity binding agreement and both parties mutually agree of each of the parties involved in the contract bound to perform their respective obligations accordance with an agreed deal. ‘Aqd also is the two parties taking upon themselves an undertaking to do something. It is composed of the combination of an offer (ijab) and acceptance (qabul). The making of ‘aqd is connecting in a legal manner, one’s offer (ijab) and acceptance (qabul) with the other, in a way which will be clear evidence of being mutually connected. Allah said in the Quran: يَا أَيُّهَا الَّذِينَ آمَنُوا لا تَأْكُلُوا أَمْوَالَكُمْ بَيْنَكُمْ بِالْبَاطِلِ إِلا أَنْ تَكُونَ تِجَارَةً عَنْ تَرَاضٍ مِنْكُمْ “Oh you who are believe...
Words: 1513 - Pages: 7
...whose behalf this Bill of Lading has been signed “Merchant” includes the chatterer, the shipper, the receiver, the consignee, the holder of this Bill of Lading and the owner of the goods. “Ship” includes any vessel owned, chartered or operated by the carrier used in the performance of the contract evidenced by this Bill of Lading carriage includes the river part of route, if any. 2.Paramount clause This Bill of Lading shall have effect subject to the Vietnamese maritime code approved by the National assembly of the socialist republic of Vietnam on 30th June,1990 and any amendment and modification there of however, in case this Bill of lading is issued in the country where the National law requires that the contract evidenced by this Bill of Lading shall take effect subject to the International. Convention for the Unifications of certain rules relating to Bills of Lading signed at Brussels on 25th August 1924 (the Hague rules arteries I to VIII) or Hague rules shall compulsorily apply to the contract evidenced by this Bill of Lading. Neither the Hague rules nor the Hague/Visby rules shall apply to this contract where the goods carried Hereunder consist of live animals or cargo which by this contract is stated as being carried on deck and is so carried. Nothing Herein contained shall operate to limit or deprive the carrier of any statutory protection from or limitation of liability afforded to the carrier by laws or regulations of any country. For the River part of route which is...
Words: 3837 - Pages: 16
...carries 10 marks 1. What are the essentials for a Valid Contract? Describe them in details. Essential of a Valid Contract All contracts are agreement but all agreements need not be contracts. The agreements that create legal obligation only are contracts. This validity of an enforced able agreement depends upon whether the agreement satisfies the essential requirements laid down in the acts. Section 10 lays down that ‘all the agreement are contracts if they are made by the free consent of the parties competent to contract for a lawful object and are not hereby expressly declared to the void’. The following are the essentials: a) Agreement: An agreement which is preliminary to every contract is the outcome of offer and acceptance. An offer to do or not to do a particular act is made by one party and is accepted by the other to whom the offer is made the we say that there is meeting of the mind of the parties. Such a position is know as consensus ad idem. b) Free consent: The parties should agree upon the same thing in the same sense and their consent should be free from all sorts of pressure. In other words it should not be caused by coercion, undue influence, misrepresentation, fraud or mistake. c) Contractual capacity: The parties entering into an agreement must have legal competence. In other word they must have attained the age of majority should be of sound mind and should be disqualified under the law of the land. A contract entered into between the parties having no legal capacity...
Words: 12221 - Pages: 49
...Chapter 7 CONTRACTS PERFORMANCES: CONDITIONS, BREACH, AND REMIDIES PG 160 NATURE AND EFFECTS OF CONDITION -What is condition CATEGORIES OF CONDITIONS -condition precedent or condition subsequent -concurrent conditions PG 161 GOOD FAITH PERFORMANCES AND DISCHARGE - Good faith - Discharge - Tendering goods - Perfect performance PG 162 SUBSTANTIAL PERFORMANCES -substantial performance PG 164 OTHER EVENTS OF DISCHARGE -mutual consent -Operation of law MUTUAL CONSENT -Recission -accord and satisfaction -substitute agreement also known as modification -novation PG 165 OPERATION OF LAW -impossibility, impracticability, and frustration of purpose pg 165 PG 166 IMPOSSIBILITY -4 intervening events: destruction of matter -death or incapacitation -means of performance PG 167 IMPRACTICABILITY -inforeseesable and extreme FUSTRASTION OF PURPOSE -principle purpose -nonoccurrence DISCHARGED THROUGH OPERATION OF LAW WHEN CONTRACT IS: -unilaterally altered -bankruptcy code -statute of limitations PG 168 BREACH OF CONTRACT AND ANTICIPATORY REPUDIATION -remedies -partial breach PG 169 ANTICIPATORY REPUDIATION -anticipatory repudiation CONTINUED PG 170 -held repudiation one of three ways- - A statement , action , knowledge maybe unable to perform PG 171 REMEDIES - Money damages - Compensation (direct damages) consequential damages, restitution, liquidated damages RESTITUTION -unjust enrichment EQUIPABLE REMEDIES -equitable...
Words: 788 - Pages: 4
...DISCHARGEMENT OF CONTRACT The law of contracts forms a substantial part of our various relationships that can have some sort of influence over us on an almost daily basis – even when there is no physical contract in front of us we may still be privy to some sort of contractual obligation. Alternatively, if you’re a fan of social theorists such as Jean-Jacques Rousseau, you may argue that we’re also bound by ‘the social contract’, but we digress. Getting back to our original point, the law of contracts plays an enormous role in many of our interactions and for the most part, there may be no real concern in regards to the performance of a contract and an agreement will be completed accordingly. However, this does not mean that issues won’t arise within a contractual relationship, and there may be circumstances where you may need to discharge a contractwhich can be done by either one, or all of the parties to the agreement, and can be discharged by either: * BY PERFORMANCE * BY MUTUAL AGREEMENT * BY SUPERVENING IMPOSSIBILITY * BY OPERATION OF LAW * BY LAPSE OF TIME * BY LAPSE OF TIME BY PERFORMANCE Before exploring the general ways in which a contract can be discharged, the most obvious way in which acontract will come to an end, is when all parties fulfil their contractual obligations and the contract has been discharged via performance. Easy. Exceptions to performance Some people may be of the belief...
Words: 2112 - Pages: 9
...Discharge of Contract Bringing a contract to an end A contract once formed can come to an end in one of 4 ways: By Performance Performing party must perform exactly as required under the contract in order to get benefit of contract (payment). IF NOT, cannot seek any payment from the other party as rule will be misused. Case: Cutter v Powell (1795) [Pg 104] * Payment was conditional on the voyage being completed & since voyage was not completed; payment was not due SECTION 3 OF APPORTIONMENT ACT – Able to claim for the days worked! (Results will be different today!!!) Case: Ocean Projects Inc v Ultatech Pte Ltd (1994) * Defendants were not entitled to any payment HOWEVER, if the contact is completed, but it turns out that there is some breach, innocent party has the right to bring an action for breach of contract! May also sue under tort of negligence! EXCEPTIONS that payment is conditional upon complete performance: Doctrine of Substantial Performance Where contract has been substantially performed leaving only minor outstanding work/defects Able to claim 100% payment minus the defects (cost of making good the defect) Depend on the facts of each case Case: Hoenig v Isaacs (1952) HOWEVER, if the contract is an entire one, even if there is substantial performance it may not be possible to make a claim! Divisible/Several Contracts Performance can be divided into parts and separate payment for each part. After each stage is completed,...
Words: 1811 - Pages: 8
...employement-at-will doctrine. Employment-at-Will Doctrine Employment-at-will doctrine means the common law rule that holds that whenever an employment relationship is of an indefinate duration, either party- the employer or the employee-may terminate the relationship at any time,for good cause or bad, in good faith or with malice(Halbert & Ingulli, 2012. p 46). John John is not protected by the employment-at will doctrine. The reason that I can fire him is because his interent blasting is a direct violation of company policy. There is no privacy when posting on the internet. When you post things on the interent you are posting for the whole world to see. John is not covered by any laws to protect him from being fired. There is also no way that he ccan contest the firing because he is violatiating the privacy of one of our most important clients. It is our duty to protect all of our client private business. Bill Bill is also not protected by the emloyment-at-will doctrine. The reason that Bill can be fired is because he is using company property illegally. You can not use company issued equipment to run your own personal business. Business is to be conducted on business assigned...
Words: 1931 - Pages: 8
... Chapter 16 Statute of Frauds – stipulates what type of contracts must be in writing Collateral promise – made by a third party to assume debts of a primary party to a contract if that party does not perform, must be in writing Prenuptial agreements – made before marriage to define each partner’s ownership right in the other’s property, must be in writing Parol evidence rule – if a court finds that a written contract represents the complete and final statements of the parties’ agreement, it will not allow either party to present “parol evidence,” testimony between the parties that is not contained in the contract itself Integrated contract – written contract intended to be complete and final in terms of agreement, extraneous evidence excluded Chapter 17 Privity of contract – only the parties that entered into the agreement have rights and liabilities under the contract Assignment – transfer of contractual rights to a third party, Assignor assigns right, Assignee receives rights Delegation – transfer of contractual duties to a third party, Obligee is owed duties, Obligor/Delegator obligated to perform the duty can delegate to Delegatee Alienation – assignments of rights in real estate (transfer of land ownership) often cannot be prohibited because it is contrary to public policy in most states, “restraints against alienation” Third part beneficiary – original parties agree that contract should directly benefit a third person Intended beneficiary – third...
Words: 1088 - Pages: 5
...? I will explore contracts between employees and employers, how can they be terminated, and if so does the employee get paid till the end of the contract. I will discuss the possibilities of just causes on the employee or employer can they be used to terminate the contract. awkward Do the different states have laws that help the employees or the employer? At the end of this research I hope to show trends in the law as it has changed in the past 10 to 15 years. The History of the Law The At-Will law was first created? by Horace Wood (1877). As my research has let me to believe Mr. Wood only created the concept of At-Will employment, he stated that the courts have already accepted it as the doctrine of the time. Mr. Wood’s statements were the catalyst of what’s the beginning of a number of new laws creating the At-Will employment doctrine. In his writing Sandler (2000), also agrees that Mr. Wood helped the courts pull away from the rules and laws set by the English at the time and helped to establish the new law for the USA. The general rule in American employment has been that an employment relationship for no specified duration may be terminated at any time and for any reason (or no reason) by either the employee or employer. This rule is known as the "At-Will" doctrine (Hunter 1999). Redundant? As an indication of the spirit of that era, in the first third of the Twentieth Century, the U.S. Supreme Court upheld individual freedom of contract and...
Words: 3724 - Pages: 15
...it suffered damage to property in the amount of $2,771,823.34, and business interruption loss of $181,529.08” (Skyway v CCRL para 2). This case uses judge law to analyze whether the plaintiff’s argument provides reasonable claim under EMPA. The plaintiff is trying to prove loss or damage as a result of discharges, which occurs when an unsafe substance is released into the environment causing harm. Section 15 of EMPA provides, 15(1) In this section,...
Words: 1289 - Pages: 6
...Hair Today Gone Tomorrow Ltd. INTRODUCTION Companies are formed to create a legal identity separate from the individuals who make up the membership of the company. A company is the predominant form of legal entity for conducting business in Ireland today. There are different types of company including private companies limited by shares, public limited companies, single member companies, unlimited companies, companies limited by guarantee having a share capital and companies limited by guarantee not having a share capital. The companies clear objectives are stated throughout but in a sentence are: To provide a barber service to customers, whilst maintaining high customer service standards and a quality health and safety implementation. 1. Legal Structure I have chosen to set up a private limited company, a private limited company is a company whose shareholders are offered limited liability. However, ownership restrictions are strictly in place to avoid the hostile takeover attempt by any association or bylaws. The restrictions include the sale or transfer of a shareholder's share must be first offered to the other shareholders the shareholders cannot sell their shares on the stock exchange to the public, a fixed number of individuals are considered to be shareholders. Reasons for using a private limited company structure There are many advantages to having a private limited company, these include: * A Private Limited Company is a legal entity;...
Words: 3467 - Pages: 14
