CHAR_A01.PDF, page 1-18 @ Normalize ( CHAR_A01.QXD )

Question 3

This question is a good one to use in order to practise an essay type answer,

and also to ensure that you know about the different ways of discharging a

contract. Refer to the summary at the end of Chapter 14.

• Ensure that you include some critical analysis, e.g. a party wish to
  claim frustration rather than be sued for breach if the provisions of the
  Law Reform (Frustrated Contracts Act) 1943 would mean that less
  money would be due (examine the provisions); a provider of services,
  such as a decorator, may wish to claim that substantial performance has
  taken place if it would mean that payment was made on the basis of the
  complete amount less a deduction for remedying the defect.


• Explain that the limits on the use of the doctrine of frustration are
  intended to prevent its misuse.

Question 4

• Explain the principles of total performance: exact (Re Moore and
  Landauer) and complete (Cutter v Powell). Discuss the outcome of
  these cases and whether (a) the decisions were fair and (b) whether they
  establish a good basis of law.


• Consider the exceptions to the general rule, substantial performance and
  partial performance, and whether they alleviate any potential unfairness.
  Use cases to illustrate, e.g. Hoenig v Isaacs, Bolton v Mahadeva, Sumpter
  v Hedges. Do the exceptions themselves raise uncertainty?


• Explain the operation of severable contracts.


• Consider the principles of time of performance, vicarious performance
  and prevention of performance.

Question 5

Introduce the doctrine of frustration and define it.

• Show when frustration can be used through case examples, and then
  explain why the limits are needed (see Chapter 14).


• Examine each limit in turn, using cases to illustrate: There may still be
  some point to the contract – Herne Bay Steam Boat Co v Hutton; where
  a contract is merely more onerous it will not be frustrated – Tsakiroglou
  v Noblee Thorl, Davis Builders v Fareham UDC; self-induced frustration
  (may be a choice of action or control over the circumstances) – Maritime
  National Fish v Ocean Trawlers.


• Explain that the Law Reform (Frustrated Contracts Act) 1943 also
  imposes limits by giving the courts discretion as to whether to order
  payment for expenses incurred and benefits obtained.

Answers guide 319

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