Discharge by Performance Flashcards
What is discharge?
Main obligations of contract have come to an end
What is the strict rule?
Perfromance must be complete and exact
If not fulfilled their exact obligations under agreement, other party doesn’t have to fulfil their obligations either
What happened in Cutter v Powell?
C tried to claim wages of husband who died before completing task
Entitled to nothing as didn’t complete work
What happened in Re Moore and Landauer?
C able to reject tins as they weren’t packaged in the quantities described, even though final amount was correct
What are the exceptions for discharge by performance?
Prevention of full performance
Acceptance of part performance
Divisible contracts
Substantial performance
What is prevention of full performance?
If one party prevents other from carrying out contract, innocent party can claim on a quantum merit basis
What is quantum merit?
Party can claim for work they did even though the obligation hasn’t been fulfilled as agreed
What happened in Planche v Colburn?
Publisher scrapped series, author able to receive quantum merit fee for prevention of full performance
What is acceptance of part performance?
Consent from both parties that’s free from pressure
If parties agree the one party doesn’t have to complete entire contract, contract must be paid on a quantum merit basis
Not consent if innocent party has no option but to take benefit for work done
Defaulting party allowed to be paid for work which they completed
What happened in Sumpter v Hedges?
Builder ran out of money, couldn’t complete job. Customer finished work, had no choice but to finish it, didn’t consent to part performance so builder not entitled to be paid
What are divisible contracts/severable contracts?
If contract has separate parts, it is divisible contract
Contract must be clearly divided into separate parts
What happened in Richie v Atkinson?
Cargo paid by the ton, only part of cargo was carried
Ship owner entitled to be paid fro the cargo he carried, did have to pay damages for breach of contract as didn’t carry entire cargo
What is substantial performance?
Party done substantially what is required under the contract, courts believe they have done enough
Must be paid appropriate amount
Won’t occur if contract is seen as single transaction
Substantial performance - Where do these often occur?
In large contracts where small elements of the contract aren’t performed
Substantial performance - how is the amount decided?
On a case by case basis
What happened in Darkin & Co v Lee?
Some repairs were below the standard, contract was substantially performed, builders entitled to money for wotk they did
What happened in Hoenig v Isaacs?
Defective furniture supplied, decorator entitled to be paid for what he done on a quantum merit basis
What happened in Bolton v Mahadeva?
Contract not substantially performed so entitled to nothing when installing defective central heating system
What happened in Young v Thames Properties?
Contreact made to resurface carpark. Work was defective but contractors were paid for work done
What is whether time of performance is important?
Some contracts, time is inserted
Time is a condition in following circumstances:
Parties expressly stated in contract that ‘time is of the essence’
Time of completion is critical for contract
One party hadn’t performed on time so other party insisted on another date of completion
What happened in Union Eagle v Golden Achievement?
Flat for sale, completion time was 5pm, money sent at 5:10
Expressly stated that time was of the essence
Seller able to repudiate contract
What happened in Charles Rickards v Oppenheim?
Car was to be built and ready for certian date, but wasn’t. Time was of the essence so able to repudiate contract and reject
What happens if it was decided that time is not of the essence?
Contract must clarify this so dispute doesn’t arise again
What are the remedies for discharge by performance?
Quantum merit - paid for work done
Repudiation - end contract
Specific performance - courts specify what needs to happen for dispute to be resolved
Damages - compensation when suffered loss
