国外商学院课程Lecture_9.pptVIP

Business (Management) Affairs Lecture 9 DISCHARGE OF CONTRACT 1 Types of Discharge DISCHARGE It is important to know when a contract is at an end (discharged) so that both parties can “move on” to new negotiations and agreements without fear that previous responsibilities will resurface. A contract is discharged by:- Performance Agreement Frustration Breach Performance A contract is discharged by COMPLETE performance only which can produce unfair results if parts of an obligation have been fulfilled :- CUTTER V POWELL (1795 ) 6 Term Rep 320 Powell employed Cutter as part of his ships crew for a long voyage .The contract provided that payment was due on completion of the journey but Cutter died 19 days before arrival HELD Cutters widow could not claim his salary for the days completed prior to his death Exceptions have been developed to prevent injustice Exceptions :-1) divisible contracts payment can be made for obligations completed if they can be divided into accountable portions e.g. a contract of employment can be divided into daily/weekly/monthly payments 2)where one party prevents the other from completing performance PLANCHE V COLBURN(1831) 8 bing 14 Planche agreed to write a book for Colburn and was to be paid on completion. He researched and wrote part of the book and was then told it was not required. HELD Planche was entitled to payment for the work completed. 3) part performance voluntary acceptance of partial performance and the payment of an appropriate price is acceptable provided there is a genuine choice as to whether to accept or reject the obligations completed. SUMPTER V HEDGES [1898] 11 Ch D 852 :- Sumpter contracted to build a barn for Hedges but abandoned it when it was only half completed HELD no payment was due as Hedges had no choice but to accept part performance 4) substantial performance If a party has received the bulk of what was agreed then payment is due but will be discounted to cover the ( minor) failure to perfo