Welcome back. Today we'll cover Chapter 7,
Performance, Breach and Discharge Types of Contract
Performance. Understanding the various types
of contract performance is essential for law students to
grasp the complexities of contract law.
Contracts can be performed in several ways a complete
performance. This occurs when both parties
fulfill their contractual obligations as specified in the
contract. The contract is then discharged
and both parties are relieved of further obligations B
substantial performance. In cases of substantial
performance, one party has mostly fulfilled their
obligations under the contract, but there may be minor non
material deviations from the contract terms.
The non breaching party is generally entitled to the
contract price minus any damages resulting from the deviations C
Partial performance. Partial performance involves one
party performing only some of their contractual obligations.
In such cases, the non breaching party may be entitled to partial
payment or specific performance of the remaining obligations D
inferior performance. Inferior performance occurs when
one party fails to meet the contract standards or
specifications. The non breaching party can
typically seek damages for any harm caused by the inferior
performance material and anticipatory breach.
Understanding the concepts of material breach and anticipatory
breach is critical for law students.
A material breach a material breach is a substantial failure
to perform a significant aspect of the contract.
When a material breach occurs, the non breaching party is
generally relieved of their contractual obligations and can
seek damages for the harm caused by the breach.
B Anticipatory breach. Anticipatory breach happens when
one party indicates through words or actions that they do
not intend to fulfill their contractual obligations before
the performance is due. The non breaching party can
treat this as an immediate breach and seek remedies.
Excuses for nonperformance. Law students should be familiar
with the various excuses for nonperformance in contract law.
A impossibility of performance if it becomes impossible to
perform the contract due to unforeseen circumstances beyond
the control of the parties. For example, natural disasters,
death of a key party, the contract may be discharged B
Impracticability. Impracticability arises when
performance is still possible but becomes extremely burdensome
or costly due to unforeseen circumstances.
In such cases, the affected party may be excused from
performance. C Frustration of purpose.
Frustration of purpose occurs when an unforeseen event
undermines the fundamental purpose of the contract, making
it senseless to continue. This can lead to contract
discharge D Mutual rescission. Parties may mutually agree to
cancel or rescind the contract, releasing both parties from
their obligations. E accord and Satisfaction
parties may reach a new agreement accord to substitute
for the original contract and once the new agreement is
performed, satisfaction the original contract is discharged.
F novation novation involves substituting a new party for one
of the original parties with the consent of all parties involved.
The original contract is discharged and the new party
assumes the obligations. Landmark case Jacob and Young's
Incorporated V Kent, 1921. This case illustrates the
importance of substantial performance and the impact of
minor deviations from contract specifications.
In this case, a builder used the wrong brand of pipes which was a
minor deviation from the contract specifications.
The court held that this did not constitute a material breach and
the builder was entitled to payment minus any damages caused
by the deviation. In conclusion, understanding the
nuances of contract performance breach and excuses for non
performance is essential for law students.
By recognizing the types of performance, the significance of
material breaches and the various excuses that can
discharge a contract, students can effectively analyze and
advise clients on contract related issues in legal
practice.