Chapter 4 – Termination of Contracts

CHAPTER 4 – TERMINATION OF CONTRACTS
Topic Case Brief Description
Termination – by performance :  discharge of specific performance à fail to sue payment Cutter v Powell (1795) 6 Term Rep 320 甲被聘協助乙航海從牙買加至英國,途中甲離世,其遺產代理索取航船酬勞,官判因其未完成合約航程故不獲發酬勞
Termination – by performance : prevention of performance à reasonable payment Planché v Colburn (1831) 8 BinG 14 出版社停刊,作家未能完成寫作責任,官判出版社需付作家合理酬勞
Termination – by performance : prevention of performance à substantial performance Hoenig v Isaacs [1952] 2 All ER 176 裝修後客人對部份裝修不滿,官判裝修工可索扣去不及格部份之酬勞
Termination – by performance : prevention of performance à substantial performance Bolton v Mahadeva [1972] 1 WLR 1009 熱管裝置公司之安裝不符基本要求且多處需再維修,官判無權索取約定酬勞
Termination – anticipatory breach The Santa Clara [1996] AC 800 Vitol 向 Norelf 買貨,後知悉船期延誤提前通知 Norelf 合約中止,由於 Norelf 沒有進一步表示,官判此視作黙認及接受合約中止
Termination – anticipatory breach – two qualifications to claim entire sum White & Carter v Mc Gregor [1961] 3 All E.R. 1178 HL [1961] 甲與乙協議,甲裝新垃圾筒,協議當日而甲尚未開始任何裝新工作之前乙表示取消協議,甲拒絕並繼績完成垃圾筒裝新
Termination – anticipatory breach (?) – IP duty to mitigate loss Brace v Calder [1895] 2 QB 253 合夥人解體由原四人變二人,原聘之經理因該解體欲中止其與原合黟人之合約
Termination by Agreement – accord and satisfaction rule

 

Pinnel’s Case [1602] 5 Co Rep 117a <also covered in Chapter 1B – Consideration ) à related to part payment of debt
Termination by Agreement – no binding accord Ferguson v Davies [1997] 1 All E.R. 315 甲乙交換唱片,甲最終只交付少於合約金額之支票,乙兌現支票,官判支票兌現不代表不能要求甲付還剩餘債項
Termination by frustration –

(1)    frustration only occurs where a supervening event goes to the very root of the contract

(2)    disapprove ‘implied term’ approach è instead, radically different

(NOT frustration)

Davis Contractors v Fareham Urban DC [1956] AC 696. 建屋協議定8 個月完成,後發現人工及物料短缺致需22個月,官判因只是較預期困難及貴,不足以構成 frustration

 

ð  a case related to loss of profits/ increase in expenses

Termination by frustration – subject matter destroyed (frustration) Taylor v Caldwell (1869) 3 B & S 826 音樂會埸地火燭
Termination by frustration – stipulated method of performance  (NOT frustration) Tsakiroglou & Co Ltd v Noblee Thorl GmbH [1962] AC 93 運花生航線需更改,因一般使用之航道被封,另一航道則另航費大增,官判不算 frustration,因另一航道雖貴但仍是一個選擇,沒有另該航運協議完全 impossible

 

ð  a case related to loss of profits/ increase in expenses

Termination by frustration – subject matter not available (frustration) Condor v Barron Knights Ltd. [1966] 1 W.L.R. 87 鼓手病了,官判 frustration
Termination by frustration – subject matter not available (frustration) Shepherd (FC) & Co. Ltd v Jerrom [1986] IRLR 358, CA 少年犯因守行為要離開公司6 個月,官判 frustration
Termination by frustration – subject matter not available (frustration) Gamerco SA v ICM /Fair Warning (Agency) Ltd. [1995] 1 W.L.R. 1226 演唱會埸地不予進行演唱,官行使酌情權令原告全數討回已付之款項,而不用從中扣除被告之消費成本
Termination by frustration – failure of specific events (frustration) Krell v Henry [1903] 2 KB 740 甲租房作觀賞皇帝巡遊,後因皇帝病了致巡遊取消
Termination by frustration – failure of specific events  (NOT frustration) Herne Bay Steam Boat Co v Hutton [1903] 2 KB 683 租船參觀海軍巡演及作一日繞艦隊巡航,海軍巡演但不構成 frustration, 因巡航仍可繼績
Termination by frustration – supervening illegality (frustration) Re Shipton, Anderson and Harrison Brothers [1915] 3 KB 676

 

政府因戰事徵用穀物致賣方無法履行與穀物買家之承諾,官判frustration
Termination by frustration – anticipatory breach / frustration (frustration) Avery v Bowden (1855) 5 E & B 714 甲協議負責碼頭裝箱,但共後通知乙無貨 (anticipatory breach)著乙不用排船,乙績安排船於碼頭等候,但其後發生戰事,官判 contract frustrated
Termination by frustration – lease (supervening event) (NOT frustration) Li Ching Wing v Xuan Yi Xiong [2004] 1 HKC 353 SARS SARS期間政府要求相關樓宇租戶搬離其租住單位10 天,當此隔離令解除後,租戶雖剩15個月租約但欲以該隔離行動作 frustration 理由,官判非 frustration
Termination by frustration – Delay (frustration) Jackson v Union Marine Insurance, Co Ltd (1874) LR 10 CP 125

 

船因擱淺致延誤 8個月,官判 frustration
Termination by frustration – performance limited (frustration) Pioneer Shipping Ltd v BTP Tioxide Ltd (the “Nema”) [1981] 2 All E.R. 1030 因罷工致合約協議之航程數量縮減一半,官判 frustration
Termination by frustration – self-induced frustrating event (NOT frustration) Maritime National Fish Ltd v Ocean Trawlers Ltd [1935] AC 524 包船方從5隻拖船揀選其中 3 隻申請牌照,然後以另外沒有申請牌照之拖船作為因沒有牌照不能網魚為由 frustrate 與船方之包租協議,官判此乃 self induced frustrating event,故不受理為 frustration
Termination by frustration – no proof of self-induced frustrating event (frustration) Joseph Constantine Steamship Line Ltd v Imperial Smelting Corp Ltd [1942] AC 154 船鍋爐因不明原因爆炸,包船方 claim damage,官判因包船方未能證明此乃船主之 self induced frustration,故包船方敗訴
Termination by frustration – loss of profits/ increase in expenses  (NOT frustration) The Eugenia, Ocean Tramp Tankers Corporation v V/O Sovfracht [1964] 2 QB 226 明知經 Suez Canal 是合約指定的危險地帶,故租船方被判違約,其企圖以 Suez Canal 被封為由 frustrate 合約不成立,因改沿Cape 雖航程加長但不致為 radically different,故不受理 frustration
Termination by frustration – valuable benefit calculation under LARCO ss16(3) BP Exploration Co (Libya) Ltd v Hunt (No 2) [1983] 2 AC 352 / [1982] 1 All E.R. 925 甲獲政府批採油特許權,與乙協議採酒,其後政府將採油國有法,官按 LRFCA S1(3) 計算 valuable benefit 價值
Termination by frustration – one party has assumed risk in the contract (NOT frustration, also NOT mistake) Amalgamated Investment & Property Co Ltd v John Walker & Sons Ltd CA [1977] 買樓宇作重建前曾詢問樓宇是否被列歷史建築,簽約後才被列入歷史建築,官判因買方之約前查詢已構成其預了要承受有關風險,故不能受理 frustration