Legal Advice Regarding Discharge Of Contracts

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This assignment will involve giving legal advice regarding discharge of contracts, a term which indicates a contract has terminated. A contract can end in many ways yet only two will be covered in this scenario namely performance and breach. Discharge by performance occurs when the parties have performed all their obligations. The latter may occur when a party fails to perform obligations or fails to achieve the terms and conditions set out in the contract. Breach can be of two types actual, where the party has not performed and anticipatory where one party states that performance will not take place. A breach of contract can also occur due to substantial performance and part performance. The former taking place when the conditions …show more content…

In order for the breaching party in this case LCL to be liable, it is vital to distinguish whether the condition is a mere representation or a term. This will depict whether the party is liable. If it’s a mere representation this will generate a claim for misrepresentation rather than a breach of contract. In Birch v Paramount Estates it was specified that the greater the significance attached, the more likely it is a term.
The construction work portrays an expressed term of the contract as it was incorporated in the contract. This constitutes a breach of contract as LCL have failed to accomplish the term outlined in the contract. Due to this, Mr Jones is entitled to recover damages as he has to arrange another company to complete the building work. The compensation Mr Jones is entitled to is namely quantum meruit as some of the terms incorporated in the contract were accomplished. The purpose of this is that it will put Mr Jones in a position which he would have been in, if the contract had been performed. This is known as ‘expectation interest’. .
As the breach is repudiatory meaning that a term has not been fulfilled, then the non-breaching party in this case Mr Jones can either terminate or affirm the contract. By affirming the contract they will accept the performance of LCL. In Sumpter v Hedges the builders failed to perform all the obligations set out in the contract known as part

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