Termination of contract
Ending contract
Frustration
Causes (P’s argument) 1 Intervening event
2 Not contemplated by
both parties
3 Not fault of both parties
4 Impossible or radically
different to original
Potential defence Negate 4 conditions
above
Results 1All outstanding
obligation discharged
2 Benefits and Liabilities
equalised between both
parties
Process
Termination Rescission
1Breach of condition 1 Mistake (Each party
(Clearly expressed as made the same mistake
condition/Statutory about a fundamental
implied as condition/P matter)
would have not entered
2 Undue influence
without strict or
(Absence of a free and
substantial assurance)
voluntary act of a
2 Serious breach of party/Could be caused by
intermediate term special relationship)
(Substantially deprived of
Exceptions: Husband and
P’s benefit)
wife/ P got independent
advice
3 Economic duress
(Pressure exerted goes
beyond legitimate)
4 Unconscionable
conduct (Covered in part
2)
Negate P’s argument (Not Negate P’s argument/Use
serious enough to exemption rule
terminate)
L Schuler AG v Wickman
Machine Tool Sales
1 Ends from time election Ends from its beginning
is made
Note : Rescission is not
2 Relieved from available in scenarios
performing future below
obligation
1 Contract has been
3 Does not affect affirmed
obligations already
2 Restitution is not
accrued
available
3 Third party’s legal
rights are affected
1P makes an election to Same
treat breach as ending the

Cases Taylor v Caldwell
Remedies
Caused by breach of warranty or slight intermediate condition
Types
Damages
1 Must be a type damage can be
awarded (Exception: provision of
entertainment or enjoyment)
2 Loss must be caused by breach
3 Loss must not be too remote
4 Innocent party has to mitigate
loss
Recovery of the contract
price
Specific performance
1Only when damage is not
adequate
2 Never ordered for contracts
involving personal service
Injunction
Stop a party from doing an act
contract
2 Must not be
unequivocal and be
communicated to the
party in breach
3 Party terminating
proves to be ready and
willing to perform their
part of contract
4 Cant not be revoked
Associated Newspaper Taylor v Johnson
Ltd v Bancks
P D
Damage can be awarded Damage cant be awarded
P would have not suffered loss but P’s loss is not caused by D
by D
Loss is outside the usual course of
First limb: loss is in contemplation business and unreasonable
of usual course of business
P’s contributory act counts for
Second limb: within reasonable reduction of damage
contemplation of parties as a
probable result of the breach
(Consequential damage only if
notice is given)
Performed obligation under the Stipulates precise completion
contract
Requires substantial performance
Entitled to recover the agreed price
Dongan v Ley Lumley v Wagner
Show the contravening conduct
will continue or happen again
 Lumley v Wagner
Restitution D has been enriched at the expense Baltic Shipping v Dillon
of P, it is unjust for D to keep the
Prevent unjust enrichment benefit
Fair and just compensation to P
Fibrosa v Fairbairn
Rectification
Mistake common to both paties
Seek order to rectify incorrect
terms
Third party’s legal right must not
be affected
Time limitation
Legal action for simple contract is
within 6 yrs
Legal action for formal contract is
within 15 yrs
Legal action for unconscionable
conduct is within 6 yrs