ACTIVITY

DISCHARGE OF A CONTRACT

1. Lorane rents a ballroom for her annual holiday

bash. She also engages caterers to prepare meals
for 500 persons. The ballroom is damaged by fire
the night before the concert and Lorane has to use
a room which can accommodate only 250 persons,
as all the other rooms are booked. Many of the
guests have to be turned away. She refuses to pay
for more than 250 meals, arguing that her contract
with the caterer is frustrated. Explain each of the
following: (a)The doctrine of frustration (b)Whether
or not Lorane can rely on the doctrine of frustration
2. Using appropriate illustrations, explain the
relationship between anticipatory breach and
mitigation of damages. 3. Monica agrees to sell
Quincy, a food vendor, bottles for natural juices.
This was for the annual agricultural show where
Quincy sells every year. The show generally lasts for
three days. The agreement is that batter for 100
bottles shall be delivered each day at 6:00 am to
Quincy’s home. He leaves home at 6:30am and the
fair starts at 8:00am. On the first day Monica
delivers 45 bottles at 1:00 pm to Quincy at the
venue where the show is held. He refuses to accept
them and tells her that she is in breach and that the
agreement is cancelled. Monica has already
purchased all the materials for the fish cakes and
insists that she be compensated. Explain the
considerations involved in Quincy’s right to
terminate the contract for breach without liability
to Monica.