Week 1 – Discharge by Performance └ Frustration LAW1212 Contract Law 2 Notes 1 Week 1 – Discharge by Performance └ Frustration Contents Week 1 – Discharge by Performance .............................................................................................. 8 Meaning of “Discharge” ..................................................................................................................... 8 Time for the Performance of Obligations ........................................................................................... 8 The Order for the Performance of contractual obligations .............................................................. 10 Cooperation & Good Faith ............................................................................................................... 11 Prevention of Performance .......................................................................................................... 11 The Level of Performance Required for the Discharge of a Contract ............................................... 12 Severable or Divisible Contracts ................................................................................................... 14 Obstruction of Performance ............................................................................................................ 15 The de minimus non curat lex rule ................................................................................................... 15 Free Acceptance .............................................................................................................................. 15 Unenforceable Contracts ................................................................................................................. 18 Substantial Performance .................................................................................................................. 19 Addendum ....................................................................................................................................... 21 Week 2 – Discharge by Agreement / Frustration ............................................................................. 24 Discharge by Agreement (Generally) ............................................................................................... 24 Discharge by Abandonment ........................................................................................................ 24 Discharge Pursuant to a Term of the Original Contract ............................................................... 26 Contractual Right to Termination upon Breach ....................................................................... 27 Conditions Precedent .............................................................................................................. 27 Conditions Subsequent ............................................................................................................ 32 Discharge by Subsequent Agreement .......................................................................................... 33 Discharge of Executory Contracts ............................................................................................ 34 Discharge of Executed Contracts ............................................................................................. 35 Waiver ......................................................................................................................................... 43 Frustration ....................................................................................................................................... 44 Frustrating Events ........................................................................................................................ 46 Effect of Frustration ..................................................................................................................... 48 Week 3 – Discharge of Contract by Breach .................................................................................... 50 General Concepts ............................................................................................................................ 50 Failure to Perform Contractual Obligations (term of contract) ....................................................... 51 Conditions .................................................................................................................................... 52 Warranties ................................................................................................................................... 53 Intermediate Terms ..................................................................................................................... 54 Termination for Breach of Time Stipulation ................................................................................ 56 2 Week 1 – Discharge by Performance └ Frustration Time being of the essence by Implication ................................................................................... 58 Making Time of the Essence by Service of a Notice to Complete ................................................ 59 Contractual Right to Terminate ................................................................................................... 59 Repudiation ..................................................................................................................................... 60 Effecting Termination and the Effects of Termination .................................................................... 66 Restrictions on the Right to Terminate ............................................................................................ 69 Party Not ready, Willing and Able or itself in breach ................................................................... 69 Election not to Terminate ............................................................................................................ 70 Termination not in Good Faith .................................................................................................... 73 Relief Against Forfeiture .............................................................................................................. 74 Week 4A – Misrepresentation ....................................................................................................... 78 Elements of Misrepresentation ....................................................................................................... 80 Statement of Fact ........................................................................................................................ 80 The Representation must be False .............................................................................................. 84 The Representation must have been Intended to Induce (and did Induce) the Innocent Party to Enter into the Contract ................................................................................................................ 87 The Issue of Materiality ................................................................................................................... 89 Week 4B - Misleading and Deceptive Conduct ............................................................................... 91 The Meaning of “Engage in Conduct” .............................................................................................. 91 The Meaning of “In Trade and Commerce” ...................................................................................... 96 Financial Services ............................................................................................................................. 99 Week 5 – Mistake ....................................................................................................................... 101 Common Mistake .......................................................................................................................... 103 Mutual Mistake .............................................................................................................................. 108 Unilateral Mistake ......................................................................................................................... 109 Unilateral mistake as to Identity ................................................................................................ 109 Unilateral Mistake as to the Terms of the Contract .................................................................. 114 Mistake as to the Nature of the Document (Non Est Factum) ...................................................... 118 Week 6A – Duress ....................................................................................................................... 121 Duress of the Person ..................................................................................................................... 122 Duress of Goods ............................................................................................................................. 123 Economic Duress ........................................................................................................................... 123 Remedies in Relation to Duress ..................................................................................................... 125 Week 6B – Undue Influence ........................................................................................................ 127 General Concepts 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