Understanding Contract Discharge and Remedies: From Breach to Frustration, Lecture notes of Law

Download Understanding Contract Discharge and Remedies: From Breach to Frustration and more Lecture notes Law in PDF only on Docsity! 1 Page Range Weekly Topic Key Areas 2 - 10 7 Overview of the Law of Contract: Ending the Contract & Remedies Ending the contract > discharge by performance > discharge by agreement > discharge by frustration > discharge for breach Discharge for breach of contract Equitable and other remedies for breach > specific performance > injunction > rectification > restitution/quantum meruit Grounds and nature of rescission > misrepresentation > mistake (common, mutual, unilateral) > duress > undue influence > unconscionable conduct 10 - 19 8 Statutory Restraints on Freedom of Contract Unconscionable conduct and the ACL > ch2 part 2-2 unconscionable conduct Unfair contract terms and the ACL > ch2 part 2-3 unfair contract terms Anti-competitive conduct; law and policy > contracts, arrangements, understandings > cartel conduct > misuse of market power > exclusive dealing > RPM > mergers/A’s substantially lessen comp 19 - 27 9 Overview of the Law of Torts The tort of negligence Duty of care and reasonable foreseeability Duty of care and pure economic loss DoC and liability for negligent misstatement Breaching the duty of care Loss caused by negligent acts or omissions Remoteness of damage/harm foreseeability Tort of negligence defences > contributory negligence > voluntary assumption of risk Tort of negligence; vicarious liability 27 - 34 10 Product Liability and the ACL Product liability > general law, state and Cth legislation Part 3-2 consumer transactions > Division 1 consumer guarantees Manufacturers’ liability > general law and Cth law Manufacturers’ liability and the ACL > Part 3-4, 3-3 and 3-4 34 - 39 11 Misleading or Deceptive Conduct Misleading or deceptive conduct > state and Cth legislation Misleading or deceptive conduct and ACL Misleading or deceptive conduct GPs > misleading or deceptive or likely to be > causation; erroneous assumption Misleading or deceptive conduct & contracts > pre-contractual negotiations > silence > exclusions and disclaimers MoDC and negligent advice > statutory and common law action MoDC and advertising & selling > labelling > product claims > character advertising > passing off/similar business names MoDC who is liable > advertising agency > passing on false information 2 CLAW5001 Topic Summaries Topic 7 – Overview of the Law of Contract: Ending the Contract + Remedies - ending the contract > discharge by performance - general rule = performance must be complete/performed exactly as agreed - exceptions to the requirement of complete performance > divisible or severable contracts (contrasted with entire contracts) > the de minimis rule = about minimal things; beneath certain low level quantity regarded as trivial > doctrine of substantial performance > acceptance of partial performance > discharge by agreement - provision in original contract or in subsequent agreement (general rules of formation of contract apply) > discharge by frustration - performance of agreed obligations becomes impossible through no fault of either party - contract automatically comes to an end, thereafter, neither party can demand further performance - doctrine basis > supervening event over which neither party has control, makes performance of obligation impossible > if parties did perform obligations they would be doing something radically different from original contract - non-frustrating events > when performance simply becomes more onerous, inconvenient or expensive > when specific provision has been made for the event in the contract > when the event should have been foreseen > when the particular event is self-induced > where the contract is merely delayed or interrupted - common law = contract not void ab initio (loss lies where it falls) > contract discharged at the point of frustration and operates prospectively - i.e. from the moment the frustrating event occurs > so the parties are discharged from any further obligations under the contract > deposit paid before discharge can’t be recovered as it was paid while the contract was void - UNLESS there has been a total failure of consideration i.e. Fibrosa Spolka Akcyjna - statute = Frustrated Contracts Act 1978 (NSW) > enables court to apportion loss where contract has been frustrated - Taylor v Caldwell [1863] 122 ER 309 (impossibility of performance due to destruction of contract subject) > hall hired building for concert, building destroyed by fire shortly before concert date > neither party to blame for fire, no provision made in contract to cover such a scenario > fire entirely unforeseen event beyond control of either party, frustrates purpose of the contract > contract terminated/discharged by frustration - Krell v Henry [1903] 2 KB 740 (futility; impossibility of performance due to non-occurrence of essential event) > H hired room to view coronation procession of King Edward VII > paid deposit but procession postponed due to illness, K demanded payment of balance of rent > H refuses to pay, contract frustrated due to factors outside of parties control - Codelfa Constructions Pty Ltd v State Rail Authority NSW (1982) 149 CLR 337 (radical performance difference) > company assumed that it could carry out work 25h/7d, as if SRA had done job itself > C argued that if they couldn’t work as planned any additional costs should be paid by SRA > contract frustrated because impossible legally to perform contract under original T&Cs > C entitled to claim for payment based on quantum merit i.e. for the work already completed