5.1: Performance

Question 1

What is the strict rule on performance?

Answer 1

• There must be complete performance by both parties of all obligations originally laid out
• Cutter v Powell

Question 2

What is substantial performance?

Answer 2

• Work is almost completed and to a good standard
• Can only be used if a warranty is breached, not a term
• Payment that is appropriate to the amount of work will be done
• Hoenig v Isaacs

Question 3

What is partial performance?

Answer 3

• Some of the work has been done, but not enough to be substantial performance
• To be valid it must be accepted by the other party, creating a new agreement for a lower amount for lesser work

Question 4

What is meant by a divisible contract?

Answer 4

• Where a contract can be seen as having multiple parts
• Claims can be made for the parts of the work that have been completed
• Ritchie v Atkinson

Question 5

What is meant by quantum meruit?

Answer 5

• If one party prevents the other from carrying out the full performance they can claim the part of the contract they completed
• Planche v Colburn