Week 6 Discharge of Contract and Remedies
Andre has contract to renovate house for client
Tuesday – Andre phones Bunnings to order:
30 x 50 kg bags of cement mix for $200
100 sheets of 2.4 meter x 1.8 meter plasterboard for $2000
1000 meters of tongue and grooved pine floorboards for $2400
Bathtub (exactly 1.8 meters) ‘Easywash’ bathtub for $340
Wednesday – not all or complete goods given to him on Wednesday:
Only 90 instead of the 100 sheets
‘Easywash’ bathtub is 2 meters long instead of 1.8
No pine floorboards
Andre gets told Bunnings will deliver the rest the following week on Wednesday
Andre upset of inadequate performance of contract and so wants to reject all goods and further deliveries from Bunnings.
Wrong – Bunnings received the acceptance from Andre to deliver the goods on Wednesday. Agreement is concluded when and where the communication of acceptance was received. In this case the communication of acceptance was received by Bunnings before communication was terminated.
Wrong or correct? – not providing consideration does not necessarily mean that one cannot enter into a contract. One can enter into a contract through either consideration or a formal execution of a deed.
Correct – Only if the offeror has received the acceptance before the phone conversation was terminated.
Correct – Parole evidence rule forbids additional orally agreed terms when the contract in question is written and appears to be completed.
Correct – obvious through facts.
Correct – Cannot distinguish which term is more important and which is less important. They are terms that are capable of being breached in serious or in minor ways.
Correct – partial performance = insufficient to discharge the contractual obligations.
Wrong? – It would be implied that after the call ALL the right and complete goods have to be delivered to Andre.