Preview

Termination of a Contract - Law

Good Essays
Open Document
Open Document
942 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Termination of a Contract - Law
Part A

A contract may be discharged or brought to an end at any time after formation and there are several ways in which this can happen. One party may avoid a contract – for example, for unconscionable conduct by the other; one party may terminate the contract before performance is complete – for example, for breach; or the contract may be performed to the satisfaction of the parties.

The contract of sale that takes place at a supermarket checkout is for all purposes completed at the time the money is paid and the goods are given to the customer. The rights attached to the contract persist for longer; for example, it is an implied term of the contract that the goods are of merchantable quality and whether this is satisfied might not become known for some time after the check out transaction.

When a contract is terminated, the future rights and obligations of all parties cease, but the contract itself remains in existence in the sense that the rights and liabilities arising prior to termination may still be pursued. Where appropriate, damages are assessed on the basis of the contract and some terms may still be enforced (Pentony, Graw, Lennard & Parker, 1999).

Termination by performance

This is when contractual obligations are fulfilled exactly as stated. Exceptions to the rule are partial and dividable performance, which must be accepted by the parties concerned. Also prevented and substantial performance allows recovery (Khoury & Yamouni, 1998).

In Sumpter v Hedges , Sumpter agreed to build 2 houses on Hedges land for the sum of 656. Work to the value of 336 had been done when Sumpter advised he wished to terminate the contract. Sumpter’s claim was not successful. The contract was a lump sum or an entire contract, and its price could not be recovered until the work was done. The builder could not claim for part payment under a quantum meruit as the owner was not responsible for the builder’s failure to complete, nor part

You May Also Find These Documents Helpful

  • Satisfactory Essays

    For the case of Sopov v Kane Constructions Pty Ltd (No 2) [2009], the appellant engaged the respondent as contractor in a construction project. The appellant repudiated the contract by wrongly calling on the respondent's bank guarantee, in response to which the respondent terminated the contract and claimed damages for quantum meruit. The Court of Appeal applied the NSW Court of Appeal decision in Renard Constructions (ME) Pty Ltd v Minister for Public Works (1992) 26 NSWLR 234 which provided that an innocent party who accepts a defaulting party's repudiation has the option of claiming either damages for breach of contract, or a quantum meruit for the fair value of work done. The initial contract price was held to be only evidentiary for the…

    • 255 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Contracts Ii

    • 292 Words
    • 2 Pages

    According to Miller and Jentz after a contract has been made, performance may become impossible in an objective sense. (2010) Impossibility of performance may discharge the contract. If the performance is too difficult or costly due to an unexpected event then a court will consider it commercially unfeasible or impracticable. Objective impossibility is based on three types of situations that qualify for discharge of contractual obligations. The first is when a party whose personal performance is essential to the completion of the contract dies or becomes incapacitated prior to performance. The second is when the specific subject matter of the contract is destroyed. The third is when a change in the law renders performance illegal.…

    • 292 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Sab 104

    • 2391 Words
    • 10 Pages

    o Could include cancellations, termination or other provisions that indicate the original agreement wasn’t final and shouldn’t be recognized as revenue…

    • 2391 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Lwc1 Study Plan

    • 8919 Words
    • 36 Pages

    2. Describe the conditions for a discharge of a contractual obligation. Most contracts are discharged by full performance or Sometimes the parties discharge a contract by agreement.…

    • 8919 Words
    • 36 Pages
    Good Essays
  • Good Essays

    contract can be fired for good cause, bad cause, or no cause at all. In an at-will situation, either…

    • 881 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Little Legal Analysis

    • 372 Words
    • 2 Pages

    Conditions, Mogul broken the contract and deprived Horatio of substantial benefit, so it’s treated as a condition.…

    • 372 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The contract of sale take place in every day life when we buy something in the shops either food or clothes or just newspaper. There aren’t buying without law. It is important that we always know our rights if we buy something.…

    • 1306 Words
    • 6 Pages
    Good Essays
  • Better Essays

    for the contract to be valid and not have any future issues or breaches of contract. Contracts must…

    • 1107 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Termination for Cause

    • 324 Words
    • 2 Pages

    2) Termination for convenience clauses are often found in construction contracts, and they grant the owner the ability to terminate a contract at their own convenience, even…

    • 324 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Contract Law

    • 302 Words
    • 2 Pages

    “Australia’s legal system is based on the English legal system.” To what extent is this statement correct? Discuss.…

    • 302 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    A party’s right to terminate a contract arises from a particular type of breach of contract by another party. The facts of the breach and the nature of the term breached in each case inform the party with whose contract has been terminated, as to whether it is lawful or not.…

    • 1620 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    If, after termination pursuant to this clause, it is determined for any reason that CONTRACTOR was not in default, the rights and obligations of the Parties shall be the same as if the notice of termination had been issued pursuant to General Condition 46, titled OPTIONAL TERMINATION.…

    • 329 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Contract Law

    • 797 Words
    • 4 Pages

    The respondent is unable to justify the violations of Section 8 and 10 of the canadian charter of rights and freedoms (charter) with regards to section 24 (2) of the charter. Section 24 (2) states that where in proceedings under section (1), a court concludes that evidence was obtained in a manner that did not infringe or deny any rights of freedoms guaranteed by the charter, the evidence shall not be excluded if it is established that, having regard to all the circumstances, the admission of it in the proceedings would bring the administration of justice into disrepute (charter).…

    • 797 Words
    • 4 Pages
    Good Essays
  • Good Essays

    FFA & Pro Golf Case study

    • 940 Words
    • 4 Pages

    “Contracts that do not state a set length of time for termination are presumptively “at will” and may be terminated by either party at any time.”…

    • 940 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The termination phase starts when performance of the project is completed and the result is accepted by the customer. It sometimes comes in the form of a checklist or automated system where areas will meet criteria or pass tests that was stated in the contract.…

    • 519 Words
    • 3 Pages
    Good Essays

Related Topics