BLAW10001 Study Guide - Final Guide: Breach (Security Exploit), Specific Performance
BLAW CH 8 – DISCHARGING CONTRACTUAL OBLIGATIONS
PERFORMANCE:
• Carrying out contractual obligations sufficiently
LIFE-CYCLE OF A CONT‘ACT:
1. Contract is made (contains various terms)
2. When contract is made, legal obligations arise (performance now legally enforceable)
3. Parties much discharge contractual obligations (usually by carrying them out)
4. The contract is discharged and comes to an end
DETERMINING THE REQUIRED PERFORMANCE:
• Firstly, words in contracts should be interpreted in their ordinary & natural meaning
• Courts will look at the intention of parties to determine the words contextual meaning
• When words are ambiguous:
o Extrinsic evidence aids interpretation
o Courts will favour a commercially convenient interpretation
o Post-contractual behaviour not taken into account
BREACH OF CONTRACT:
• Failure to perform voluntarily is a breach of contract
• Breach does not discharge the contract:
o Obligations still exist, and are enforced by legal action
o Courts sometimes order specific perforace
o However, ordinary remedy is damages
o Sometimes, the right to terminate is also given
EXCUSING PERFORMANCE:
• Contractual performance is required unless the court excuses performance because the
performance is impossible
INITIAL IMPOSSIBILITY
• Promise is impossible from the outset → is not an enforceable obligation
• E.g. sale of non-existent item
SUPERVENING IMPOSSIBILITY/FRUSTRATION
• When performance is initially possible but changed circumstances make it
impossible → situation called superveig ipossibility
• When a contract is frustrated:
o Changed circumstances make the situation radically different
from the start AND;
o Cannot be inferred that the parties assumed the risk of changed
circumstances AND;
o The party seeking relief not responsible for the change AND;
o It would be unjust in new circumstances to enforce agreement
o SEE: Codelfa (1982); Maritime National (1935)
• When a contract is discharged by frustration both parties excused from
further performance
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