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Four ways in which a contract may be discharged.
- Essay length: 7731 words
- Submitted: 10/11/2005
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DISCHARGE OF THE CONTRACT.
There are four ways in which a contract may be discharged.
> Agreement.
> Performance.
> Frustration.
> Breach.
1. DISCHARGE BY AGREEMENT.
A contract can be discharged in precisely the same way it was formed. Notice that there must be consideration from both sides.
2. DISCHARGE BY PERFORMANCE.
Complete and proper performance will discharge both parties.
The original rule was that performance must be precise and exact.
Re Moore & Co Ltd and Landauer & Co [1921] 2 KB 519.
A contract was drawn up for the sale of tinned fruit stating that the tins were to be packed 30 tins to a case. When the goods arrived, although the correct number of tins was delivered, they were packed in cases of only 24 tins.
This could lead to unjust results.
Cutter v Powell (1795) 6 Term Rep 320.
The defendant agreed to pay Cutter 30 guineas provided he executed his duties as second mate on a voyage from Kingston, Jamaica to Liverpool. Cutter began the voyage but died when the ship was 19 days short of Liverpool. Cutter's widow
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