Contract - Performance Case Law Flashcards
Cutter v Powell (1795)
- Contract to crew the ship was an entire agreement.
- Wages only payable on completion (condition precedent).
- Widow not entitled to a quantum meruit claim.
Key Point: Contract was deemed indivisible. Hard case that after the courts developed various mechanisms to avoid.
Richie v Atkinson (1808)
- Cargo contract deemed divisible when contracted tonnage was not provided.
- It was possible to divide the contract and pay for what had been delivered.
- D entitled to damages for tonnage missing.
Key Point: Past performance is independent from future obligations.
Bolton v Mahadeva [1972] CA
- central heating installation did not function. Mahadeva refused to pay and Bolton refused to rectify.
- At first instance it was ruled contract valid and payment due.
- In CA contract discharged as no substantial performance of contract.
Key Point: Substantial performance only applies where there are minor incomplete work values.
Hoenig v Issacs [1952] CA
- Defects in interior decoration contract.
- Work ruled as substantial performance therefore contract price less cost of remedy awarded.
Key Point: Contrasts to Bolton v Mahadeva. No bright line on what is determined substantial performance. Approved in Williams v Roffey [1991].
Dakin v Lee [1916] CA
- Defective repairs to the house of Lee.
- Ruled the contract price less cost of repairs was due. Substantial performance upheld.
Key Point: Mitigates harshness of entire agreements (condition precedent). Generally applied in cases except those involving Sale of Goods.
Sumpter v Hedges [1898]
- Builder was unable to finish works started. Home owner took over and finished the work.
- Builder could not claim partial performance (therefore claim for works completed) as the home owner had no choice but to accept the works completed thus far.
- Payment for materials left onsite was allowed.
- In order to be validated for labour costs, an inference of a fresh contract to pay must be proven.
Key Point: Partial performance requires active acceptance by the injured party. If not accepted, the party in breach must prove incontrovertible benefit for a restitution claim or a fresh contract. Links to property rights (whatever is joined to the land becomes part of the land).
Moore v Landauer [1921] CA
- Fruit was packed in 24 tins not 30 as per the contract. No difference in commercial value.
- CA held that the good could be rejected since the description of the goods was not met.
Key Point: Hard case. Invocation of the SOG Act despite obvious delivery of commercially equal goods.
Arcos v Ronaasen [1933] HL
- timber supplied was 25% thicker than specified but yet fit for purpose.
- HL held the contract term was a strict requirement and the defence could not prove the deviation was minimal.
Key Point: Hard case since remedied by amendments to the SoG 1979 (for commercial contracts only).
Ruxley v Forsyth [1994] HL
- pool manufactured with less depth than stipulated in contract. Safe and no property devaluation proved.
- HL overturned CA decision for full replacement value and instead granted only a sum for loss of amenity.
Key Point: As a consumer Ruxley should have been entitled to strict interpretation of the contract. Reasonableness cited as the ratio for awarding amenity damages only.
Cleveland Bridge v Multiplex [2010] CA
- complex litigation over Wembley Stadium.
- argument over costs awarded under partial performance and if Sumpter v Hedges applies (i.e. doctrine of implied contracts v restitution).
- ruled that Sumpter v Hedges is still good law where the contract is entire the party in breach has no right to claim for restitutionary costs.
Key Point: Restitutionary claims require a divisible contract.
Roberts v Havelock (1832)
- shipwright refused to complete repairs until sums due were paid.
Key Point: Repair contracts are generally divisible.
Behzadi v Shaftsbury [1992] CA
- Purchaser rescinded purchase contract based on their submission of notice that time was of essence after the other’s party breach of time.
- Held purchaser in breach since unreasonable length of time stipulated.
Key Point: Notice can be used to make time a condition. Must be reasonable.
Union Eagle v Golden Achievement [1997]
- courier arrived 10 min late with contract for flat purchase. Deposit forfeit as liquidated damages since seller refused to accept performance after the deadline.
Key Point: Innocent party has the option to waive a stipulated time performance. No rights accrue to the party in breach when time is a condition.
