ADVANCED CONTRACT LAW SUMMARY

Transcription

1 ADVANCED CONTRACT LAW SUMMARY LAWSKOOL PTY LTD

2 CONTENTS CASE LIST INTRODUCTION TERMINOLOGY IMMEDIATE DUTY TO PERFORM CONTRACT CONTINGENT CONDITIONS THE NATURE OF CONDITIONS PRECEDENT TO PERFORMANCE Contingent conditions are not promissory Contingent conditions may be conditional to performance or formation Contingent conditions are presumed to be precedent to performance PARTY S CO-OPERATION TO EFFECT FULFILMENT WAIVER OF CONDITION PRECEDENT FAILURE OF CONDITION PRECEDENT CASES Suttor v Gundowda (1950) 81 CLR Perri v Coolangatta Investments (1982) 149 CLR Toga Development v Gibson (1973) 2 BPR Raysun v Taylor [1971] Qd R Meehan v Jones (1982) 149 CLR PERFORMANCE OF OBLIGATIONS DEPENDENCY OF PROMISES THE ORDER OF PERFORMANCE DUTY TO PERFORM OBLIGATIONS DEFECTIVE OR IMPERFECT PERFORMANCE Boone v Eyre (1779) 1 Hy Bl Bettini v Gye (1876) 1 QBD DUTY DEPENDENT ON PARTY BEING WILLING AND ABLE TO PERFORM Repudiation in the form of inability to perform Repudiation in the form of unequivocal unwillingness to perform Foran v Wight (1989) 168 CLR lawskool.com.au 2

3 4.5.4 Peter Turnbull v Mundus Trading (1954) 90 CLR ACTUAL AND ANTICIPATORY BREACH ACTUAL BREACH OF CONDITION IDENTIFYING ACTUAL BREACH CASE LAW FOR ACTUAL BREACH Tramways Advertising v Luna Park (1938) 61 CLR Associated Newspapers v Bancks (1951) 83 CLR Bunge Corp v Tradax [1981] UKHL Schuler v Wickham Machine [1973] UKHL Shevill v Builders Licensing Board (1982) 149 CLR Progressive Mailing House Pty Ltd v Tabali Pty Ltd (1985) 157 CLR ACTUAL BREACH OF INTERMEDIATE TERM Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB Cehave v Bremer (The Hansa Nord) [1976] QB Liverpool Holdings v Lynton Car Sales [1978] Qd R ANTICIPATORY BREACH Relationship with dependency of promises Act of repudiation TERMINATION FOR ANTICIPATORY BREACH REQUIREMENTS FOR ANTICIPATORY BREACH ANTICIPATORY REPUDIATION CASE LAW Hochster v De La Tour (1853) 2 E & B Universal Cargo Carriers v Citati [1957] 2 QB Afovos Shipping v Pagnan [1983] 1 All ER Rawson v Hobbs (1961) 107 CLR The Mihalis Angelos [1970] 3 All ER Maple Flock v Universal Furniture (1934) 1 KB Federal Commerce and Navigation v Molena Alpha [1979] AC Peter Turnbull v Mundus Trading (1954) 90 CLR Foran v Wight NOTICE TO PERFORM lawskool.com.au 3

4 7.1 TERMINATION FOR BREACH OF VALID NOTICE TO PERFORM REQUIREMENTS BEFORE TERMINATION CASES Louinder v Leis (1982) 149 CLR Laurinda v Capalaba Park Shopping Centre (1989) 166 CLR RESTRICTIONS ON RIGHT TO TERMINATE ELECTION TO AFFIRM Tropical Traders v Goonan (1964) 111 CLR Coastal Estates v Melevende [1965] VR Sargaent v ASL Developments (1974) 131 CLR Peyman v Lanjani [1985] Ch Immer v Uniting Church (1992) 182 CLR Distinguishing ASL Developments and Coastal Estates LIMITS ON THE RIGHT TO AFFIRM FOLLOWING SERIOUS BREACH Automatic Fire Sprinklers v Watson (1946) 72 CLR White and Carter v McGregor [1962] 2 AC The Alaskan Trader [1984] 1 All ER RELIEF AGAINST FORFEITURE Legione v Hateley (1983) 152 CLR Tanwar Enterprises v Cauchi (2003) 217 CLR Stern v McArthur (1988) 165 CLR CONSEQUENCES OF TERMINATION RECOVERY OF PURCHASE MONEYS AND DEPOSIT McDonald v Dennys Lascelles (1933) 48 CLR The Mihalis Angelos (1971) 1 QB Golden Strait Corp v Nippon [2007] UKHL Hyundai Heavy Industries v Papadopoulos [1980] 2 All ER Bot v Ristevski [1981] VR RESTITUTIONARY RECOVERY OF MONEYS PAID DUE TO TOTAL FAILURE OF CONSIDERATION Baltic Shipping v Dillon (1993) 176 CLR Shaw v Ball (1962) 63 SR (NSW) PARTIAL PERFORMANCE & QUANTUM MERUIT lawskool.com.au 4

5 9.3.1 Partial performance Substantial performance Segur v Franklin (1934) 34 SR (NSW) Appleby v Myers (1867) 36 LJCP 331 (UK case) TERMINATION BY FRUSTRATION ELEMENTS OF FRUSTRATION National Carriers Ltd v Panalpina (Northern) Ltd [1981] AC FRUSTRATING EVENTS FRUSTRATING EVENTS Common Law Statute lawskool.com.au 5

6 Case list The Alaskan Trader Afovos Shipping v Pagnan Appleby v Myers Associated Newspapers v Bancks Automatic Fire Sprinklers v Watson Baltic Shipping v Dillon Bettini v Gye Boone v Eyre Bot v Ristevski Bunge Corp v Tradax Cehave v Bremer (The Hansa Nord) Chapman v Taylor 10.2 Coastal Estates v Melevende Codelfa Construction v State Rail Authority 10.2 DTR v Mona Homes 3.2 Federal Commerce and Navigation v Molena Alpha Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour 10.2, Foran v Wight 4.5.3, Godfrey Constructions v Kanangra Park 8.3 Golden Strait Corp v Nippon Herne Bay Steam Boat Co v Hutton 10.2 Hochster v De La Tour Hoenig v Issacs 9.3.1, Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd Hyundai Heavy Industries v Papadopoulos Immer v Uniting Church Kennedy v Vercoe 3.2 Krell v Henry Laurinda v Capalaba Park Shopping Centre Legione v Hateley Liverpool Holdings v Lynton Car Sales lawskool.com.au 6

7 Louinder v Leis Maple Flock v Universal Furniture McDonald v Dennys Lascelles Meehan v Jones 3.2, Metropolitan Water Board v Dick 10.2 National Carriers v Panalpina Neeta v Phillips 7.2 Nina s Bar Bistro v MBE Corp 3.4 Perri v Coolangatta Investments Peter Turnbull v Mundus Trading 4.5.4, Peyman v Lanjani Progressive Mailing House Pty Ltd v Tabali Pty Ltd 5.3.6, Rawson v Hobbs Raysun v Taylor 3.3, Sargaent v ASL Developments Schuler v Wickham Machine Segur v Franklin Shaw v Ball lawskool.com.au 7

8 1. Introduction 1.1 TERMINOLOGY Promissory Condition Contractual obligation whose performance goes to the root of the contract. A s obligation to perform does not arise until execution of promise by B. Innominate or Intermediate term Contractual obligation whose performance may or may not go to the root of the contract Contingent Condition An event/eventuality which triggers contractual consequences Contingent condition precedent to the formation of contract No binding contract exists until fulfilled, i.e. subject to contract, something has to happen before contract is formed. Duty to perform will not arise until fulfilment of a condition neither side promised would be fulfilled. Condition precedent to performance No obligation to perform until fulfilment Condition subsequent to performance Obligation to perform is immediately binding but comes to an end after fulfilment. Performance lawskool.com.au 8

9 Carrying out promissory obligations Fulfilment Where contingencies are met Rescission of a contract Does not mean termination of contract, but rather the bringing of the contractual obligations to an end. Repudiation Acts or omissions by a party which constitute breaches of contract, and are so serious as to go to the root of the contract. Renunciation Communication of repudiation by unequivocal, clear and unambiguous words or actions. Mere Warranty Contractual obligation whose performance does not go to the root of the contract Warranty Contractually binding representation of past, present or future fact e.g. sale of a business as a going concern 2. Immediate duty to perform contract In general, breach of a contract can only arise when lawskool.com.au 9

10 (1) the immediate duty to perform the promise allegedly breached has arisen, and (2) the time allowed for performance of that promise has expired without the promisor having carried out the substantive element of the promise. Whether an immediate duty to perform the contract has arisen depends on whether the contract stipulated that either time must elapse or that conditions precedent to performance of that obligation has arisen before the duty to perform the particular promise would arise. If the contract provides such a stipulation, it must be considered whether time has in fact elapsed or that the conditions precedent have been fulfilled, or alternatively, that the need to satisfy either stipulation has been waived. The conditions precedent to the duty to perform may take the form of either a: u u u Contingent condition; Promissory condition; or Concurrent condition. To order the complete version of the Lawskool Advanced Contract Law Summary please visit lawskool.com.au 10