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Asma

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20 views7 pages

Asma

Uploaded by

22201260
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Discharge of contract

NAME : ASMAUL HOSNA


REGISTRATION NUMBER : 23111021
Discharge by subsequent or
supervening impossibility or
illegality
 Impossibility at the time of contract
Example: If a person agrees to clean the local theater for a year but
the local theater later burns down, the person is excused from
performing the rest of the contract because the contract was
predicated on the local theater's existence.
 Subsequent impossibility
Example : If A buys tickets from B to watch a cricket match and pays
half the price in advance. If the match is cancelled, A will be unable to
reclaim from B because the termination was beyond A's control.
Frustration

FRUSTRATION IS A HELPLESSNESS ARISING FROM IMPOSSIBILITY. THE DOCTRINE OF


FRUSTRATION THEREFORE DISCHARGES PARTIES FROM THEIR OBLIGATION TO
PERFORM A CONTRACT WHEN A CONTRACT IS HIT BY AN EVENT THAT MAKES ITS
PERFORMANCE IMPOSSIBLE.
EXAMPLE : A CONCERT HALL WAS HIRED OUT AND SUBSEQUENTLY DESTROYED IN
A FIRE. GENERALLY SPEAKING, WHERE THE SUBJECT MATTER OF A CONTRACT HAS
BEEN DESTROYED DUE TO NO FAULT OF EITHER PARTY, THE CONTRACT WILL BE
FRUSTRATED.
THE LIMITATION ACT, 1963 LAYS
DOWN THAT A CONTRACT
SHOULD BE PERFORMED WITHIN
A SPECIFIED PERIOD CALLED
PERIOD OF LIMITATION. IF IT IS
Discharge by NOT PERFORM AND NO ACTION IS
TAKEN BY THE PROMISE WITHIN
lapse of time THE PERIOD OF LIMITATION, HE IS
DEPRIVED OF HIS REMEDY AT
LAW. IN OTHER WORDS, WE MAY
SAY THAT THE CONTRACT IS
TERMINATED.
Discharge by operation of law

 Death
 Insolvency
 Merger
 Unauthorised material alteration
Discharge by
breach of
contract
Case: Hochster vs De La Tour (18530)
FACTS: HOCHSTER (PLAINTIFF) ENTERED INTO A CONTRACT WITH DE LA TOUR (DEFENDANT) TO ACCOMPANY AND ASSIST DEFENDANT ON A THREE-MONTH TRIP. BEFORE THE TRIP WAS SCHEDULED TO BEGIN, DEFENDANT INFORMED PLAINTIFF THAT HE NO LONGER
NEEDED HIM. PLAINTIFF SUED, AND THE COURT, LORD CAMPBELL, C.J., RULED IN FAVOR OF THE PLAINTIFF.
ISSUES: WHETHER A PARTY WHO IS READY AND ABLE TO PERFORM AN AGREEMENT MAY RECOVER DAMAGES FOR BREACH BEFORE PERFORMANCE IS DUE, WHEN THE OTHER PARTY RENOUNCES THE AGREEMENT BEFORE PERFORMANCE IS DUE?
JUDGEMENT: PLAINTIFF WAS ABSOLVED FROM HIS OBLIGATION ON THE CONTRACT. THE INJURED PARTY RETAINS THE OPTION TO SUE IMMEDIATELY OR TO WAIT UNTIL THE DATE PERFORMANCE IS DUE BEFORE BRINGING AN ACTION FOR BREACH.
REASONING: WHEN PARTIES ENTER INTO A CONTRACT FOR FUTURE PERFORMANCE, A RELATIONSHIP IS ESTABLISHED WHEN THERE IS AN IMPLIED PROMISE THAT BOTH PARTIES WILL ACT CONSISTENT WITH THEIR CONTRACT AND NOT INTERFERE WITH ITS FUTURE
PERFORMANCE. IN THIS CASE, DEFENDANT CLEARLY REPUDIATED HIS AGREEMENT WITH THE PLAINTIFF, AND IT IS WASTEFUL TO REQUIRE PLAINTIFF TO WAIT AND MAKE PREPARATION FOR AN EVENT THAT WILL NOT OCCUR.

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