Discharge

Discharge of Contract
In this part of the lecture we determine when the obligations created in the contract ends

Discharge of Contract
Obligation arises upon formation
The obligation is discharged upon the occurrence of a factor

Performance
Obligation is discharged upon performance of the obligation
By performance we mean precise performance (Cutter v Powell)

Exception to precise performance
De minimis Rule
Prevented Performance
Divisible Contract
Acceptance of partial performance
Substantial Performance

Breach
Where a party fails to perform his obligations, his primary obligation is discharged
There are 2 categories of breaches – actual or anticipatory

Agreement
Existing
Subsequent

Frustration
Discharges parties obligations immediately
Need to prove :-
Supervening event
No fault of parties
Radical Change in Circumstances
Davis Contractors v Fareham UDC (1956)

Radical Change
Destruction of subject matter
Non occurrence of event
Government interference
Personal Incapacity

Effect of Frustration
Common Law position – Fibrosa Spolka (1943)
Frustrated Contract Act

Conclusion
Obligation in a contract (primary) continues until discharged
Secondary obligations may arise as a result of breach ie. pay damages