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Discharge

Discharge by performance and breach

  • 3 things to know
  • Component 4

Overview

Recall questions on discharge by performance, tender, severable contracts, substantial and partial performance and delay, on repudiatory breach of conditions, warranties and innominate terms, and on anticipatory breach and the choice to accept or affirm.

What you need to know

Answer each one before you reveal it.

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Key term

How can a contract come to an end other than by performance?

Key term

When can a party who has not completed performance still claim payment?

Key term

How is a contract discharged through performance?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is tender of performance and when does it apply?

    Model answer

    Tender of performance is an exception to the requirement of complete performance, occurring when one party offers to perform but the other party refuses to accept that performance.

  2. 2

    Define a severable contract.

    Model answer

    A severable contract is one where the obligations can be divided into separate parts, allowing payment for completed portions even if the whole contract is not performed.

  3. 3

    How is a contract discharged through performance?

    Model answer

    A contract is discharged through complete performance by both parties of all their contractual obligations.

  4. 4

    How does the doctrine of substantial performance operate?

    Model answer

    Substantial performance allows a party who has performed most but not all of their obligations to claim payment, subject to a deduction for the incomplete work.

  5. 5

    When does acceptance of partial performance create an obligation to pay?

    Model answer

    When one party voluntarily accepts incomplete performance from the other, this creates an obligation to pay for what was received.

  6. 6

    What is the effect of delayed performance where time is not of the essence?

    Model answer

    The innocent party cannot treat the contract as discharged, but may claim damages for any loss caused by the delay.

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AThe injury to the claimant's rights is small.
BThe injury is capable of being estimated in money.
CThe injury can be adequately compensated by a small payment.

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