Question

regarding breach of contract by improper or incomplete performance describe any situation where a victim of breach may treat the contact as still binding 

Answer 1

Different ways a contract can be discharge by :

a) Performance

b) Agreement or consent

c) operation of law

d) breach of contract

e) lapse of time

f) by frustration

Discharge by frustration :

Sometimes circumstances change so much after a contract is made that it is impossible to carry it out. For instance, the subject matter of the contract may be destroyed, as where there is a contract to buy a painting, but before it can be handed over, it is stolen or destroyed by fire. If this happens without the fault of either party a court may find that the contract has automatically ceased ('become frustrated'). In that case neither party will be bound. The court must be satisfied that there is no provision in the contract that the contract should continue to bind even if such an event should occur.

while discharge by agreement : The parties to a contract can agree at any time to end it. Such an agreement is itself a contract, so there must be consideration. If both parties have obligations under the contract which have not yet been carried out, release from those obligations counts as consideration, so nothing more is required.

A person is liable to perform agreed-to contract duties until or unless he or she is discharged. If the person fails to perform without being discharged, liability for damages arises.

A change in financial condition occurs, an unknown claimant to rights in land appears, a labor strike arises, or any of a number of situations may crop up that will interfere with the carrying out of contractual duties. Under such circumstances non breaching party losses the right to discharge the contract.