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Contract Law

Submitted by hchu7973 on June 7, 2007

Category: Miscellaneous
Words: 1183 | Pages: 5
Views: 296
Popularity Rank: 32,852
Average Member Grade: N/A (Add a Comment / Grade this Paper)

The order of performance

If a contract sets for the time of the performance, it is binding, or else breach. If no date is set, the rule is one must perform it in a reasonable time.

Working out who comes first and who comes second is ultimately a question of construction.

A dependent obligation is one where you don¡¯t have to perform until the other party performs. Historically, courts usually construe performances as independent. Today there is a presumption of dependency. In those cases, one doesn¡¯t have to perform where it seems like the other party can¡¯t perform. But many obligations are concurrent e.g. order drink/food at café.

Automatic Fire Sprinklers
Watson was employed by AFS, they had a dispute and AFS ended the contract. But they can¡¯t unilaterally end the contract. Unilaterally ending an employment relationship is possible, but not employment contract  So Watson still turned up to work and sat on his desk doing nothing. But Watson failed in claiming salary because salary was dependent on his work, not independent.

Prevention of performance

Discharge by performance
Once you have performed your obligations, you are discharged. You have to perform your contractual obligations exactly.

Entire contracts
Simply on where one party¡¯s obligation to perform depends on the other party entirely to perform.

Cutter v Powell – A sailor signed on to sail a ship and died half way through his voyage. Family claimed for half of his wage. This is a question of construction. However, family failed because the contract relied on the sailor to complete the entire voyage. The wage was in excess of the market wage.
Sumpter v Hedges –
Assume you have a contract to build a house for a fixed price. The builder abandons the project halfway through, and says ¡®pay me half the...

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