Discharge by performance of contracts
Normally an express condition must be strictly and completely complied with. Significant trend in modern contract law: good faith performance.
Conditions
– concurrent condition
– condition precedent
– condition subsequent: discharges the duty to perform
Breach of contract: If a party breaches a contractual obligation, is the other party discharged from its contractual obligations? Depends on the quality of the breach. A breach is material if it deprives the party from the benefit it expected, if the breach goes “to the heart of the contract”.
Test: Is the breach material or immaterial?
– put it into the contract (“time is of the essence”)
– serious delay in performance
– seriously defective goods
– willful breach
Excuses for non-performance: A problem arises between the conclusion of the contract and the agreed time of performance.
1. Impossibility
For example: supervening illegality, death of promisor, destruction of subject matter, intervening illegaliy
2. Frustration of purpose
Knell v. Henry (1903)
3. Impracticability
A very unusual event which occurred after the contract was concluded makes the performance much more difficult or expensive.
Parker v. Arthur Murray, Inc.(page 511)
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