TOPIC; OPERATION OF DISCHARGE OF CONTRACT.

1.What are the categories of events that the courts have generally considered to be frustrating events that causes the contract to be discharged as between the contracting parties?

2.A ship was chartered to proceed 'with all convenient fast speed' from Copenhagen to Amsterdam. One of the terms of the agreement read: 'all and every danger and accident of the seas excepted', giving rise to an exclusion clause in the event of any unforeseen delays. The chartered ship left Copenhagen but ran onto rocks the following day, and it was over three months before it could be towed off. After the shop was towed for repairs, it was found that many months of work and repairs would be needed on the ship before the ship would be seaworthy again. Was the contract frustrated, despite the inclusion and operation of the exclusion clause and term in the contract regarding accidents that occur out at sea?

3.Bjorn a licensed plumber, agrees to supply and install a domestic heating service for Frida for

($) 1000. After the work is completed Frida refused to pay Bjorn, stating that the heater has not

been properly installed. It is clear and evident from the water visibly leaking from the heater, that

the domestic heater leaks due to the poor service and workmanship in the plumbing.

Discuss whether Bjorn is able to recover the ($) 1000, or any other sum of money for his plumbing

work and installation of the domestic heater from Frida if:

1. It will cost ($)500 to remedy the defects in the work; or

2. It will cost ($) 200 to remedy the defects in the work

3. It will cost ($) 50 to remedy the defect in the work;

4.Question 1

Which of the following conduct will not result in the discharge of a contract by the operation of law?

a) The merger of a simple contract into a formal contract.

b) The material alteration of a written contract without the consent of the other party.

c) The death of one of the parties to a contract other than for personal services.

d) The bankruptcy of one of the parties.

5.Which of the following situations involves the discharge of a contract by agreement?

a) One of the parties becomes bankrupt.

b) Each party discharges the obligation of the other to perform the contract.

c) One of the parties fails to carry out their obligation completely, and the other party accepts this.

d) Performance of the contract becomes impossible due to the occurrence of an unforeseen event.

6.Which of the following situations involves the discharge of a contract by performance?

a) One of the parties becomes bankrupt.

b) Each party discharges the obligation of the other to perform the contract.

c) One of the parties fails to completely carry out their obligation, and the other party accepts this.

d) Performance of the contract becomes impossible due to the occurrence of an unforeseen event.

7.Which of the following involves the discharge of a contract by frustration?

a) One of the parties becomes bankrupt.

b) Each party discharges the obligation of the other to perform the contract.

c) One of the parties fails to carry out their obligation completely, and the other party accepts this.

d) Performance of the contract becomes impossible due to the occurrence of an unforeseen event.

8.Which of the following situations reflects the best description of discharge by waiver?

a) One party leads the other to reasonably believe that strict performance will not be insisted upon.

b) A new agreement is substituted for the old by the parties.

c) Both parties abandon their original agreement while it is still executory.

d) A party who has already performed their obligation agrees to relieve the other party from

performing their obligation in return for their doing something different.

9.Which of the following situations is not one of the requisites which must be satisfied before a contract

will be frustrated?

a) It would be unjust to hold the parties to the original contract.

b) The frustrating event was foreseen and referred to in the contract.

c) The frustrating event was outside of the control of the parties.

d) The frustrating event has significantly or radically changed the obligations of the parties.

10.A partial breach arises where one party breaches a less important term of a contract. (True or False)