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Discharge and Breach Lecture notes for this topic.

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Wilfrid Laurier University
Shelley Mc Gill

Discharge and Breach November 1, 2010  Did I get what I bargained for o We want our contracts to be discharged o It has not more legal effects o No one can complain anymore- legally finished o If suing for breach, it is not discharged o If everything solved, contract is discharged o Valuable for defendants in breach of contract lawsuit- discharge  Can I sue on a contract? Not if it is discharged o Stuck with whatever happened o Most obvious is when it is fully performed  do everything you promised to do, the other side did everything they were supposed to do  for example, receipt is proof of discharge  Sometimes difference of opinion- did you fully perform?  Depend on interpretation of the words  Discharge is perfect performance- you're happy, I’m happy  Agreement o How bring to an end even if not fully performed o Agreed its over o Don’t want you to do anymore, don’t have to do anymore o For example, landlord lets you end your lease early o Even though didn’t fully perform, you ended the agreement o Not giving anymore consideration and therefore need to be under seal o Don’t need to be under seal if there is consideration o Novation- replace with another contract, this is the consideration o Accord and satisfaction  Once the lawsuit has started- court document  Settling not only the old contract, but also the lawsuit  New consideration  Even if you win the lawsuit, you have wasted a lot of time and money that the other side won’t cover  Document that settles a lawsuit and discharges the contract  Mutual consideration because cost both to prove their side  Loser pays for winner’s costs but not dollar for dollar  Scale o Party/party- tariff o Solicitor/client  Contract calls for its own discharge o If we anticipate, we can build into contract things that will automatically discharge it o Yes we have a deal, but it is automatically discharges if that thing happens in the contract o Condition precedent  Like void  Deposit comes back o Condition subsequent  Like voidable  Deposit doesn’t come back o If we are discharging a contract, should you get anything paid legitimately during the contract o Not trying to undue it o General rule is that no more liability after the discharge, but shouldn’t back us out of stuff before  Dead as of today  Void and voidable deal with stuff before the discharge o Option to terminate  Nothing happens automatically  You get the choice  Frustration o Very specific legal meaning o Occurs when some event happens that neither party contemplated and neither party causes it o But now the continued performance of the contract is useless, impossible, or purposeless o No point in doing it o If that happens, then we consider the contract discharged o When travelling, do I get my money back if something like this happens, because pay upfront  Is there a term? Must check for this  If discharged and no term, then don’t get money back o Purposeless  What if it was your honeymoon and your husband dumps you  Purpose of trip totally gone  If your purpose- the reason both agreed  Travel agents usually put in disclaimers to protect themselves against this o Chandler and Webster  In England, there is going to be a parade  People rent hotels along parade  Hotels raised prices and rent by the hour when not normally would do this  Know both did this for the parade  Paid upfront o Only difference between mistake as to existence of subject matter and frustration is the time of the event  If at time of agreement it is mistake as to subject matter  Frustration occurs after the agreement  What happens to stuff we have already done o Everything that has gone on between discharge and performance o May be obligated to perform before pay o For example, in salary get paid before perform o Discharge means (from chandler and Webster) the contract is over as of that date o The contract terms dictate what had to happen o Tricky part of this chapter is what happened afterwards to make it more fair  Put your money down as a partial performance, or is it a deposit, or a prepaymentthese all mean different things  the language will dictate most of the time  must know this history o chandler = no  deposit is holding place for something do in the future o fribosa case  second world war  requests warehouse space in Poland  Poland is first to be given over to the Nazis  Can’t send stuff in Poland anymore- frustrating event  Didn’t get anything for his money  No benefit on both sides  Therefore should come back  All or nothing
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