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Lecture

BU231 Lecture Notes - Condition Subsequent, Condition Precedent, Specific Performance


Department
Business
Course Code
BU231
Professor
Shelley Mc Gill

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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

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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
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