Discharge by performance Flashcards
what is meant by discharge of contract?
Both parties have done what was agreed to in the contract, the contract has now come to an end
What is the strict rule?
The performance must be complete and exact
Cutter v Powell held?
She was entitled to nothing. He agreed to work the entire voyage and he didn’t so his work wasn’t complete
When can the strict rule be avoided?
- Prevention of full performance
- Acceptance of part performance
- Divisible contracts
- Substantial performance
(PADS)
What is prevention of full performance?
IF one part prevents the other from carrying out the contract, the innocent party can claim on a quantum merit basis
What does Quantum Merit mean?
Party can claim for work done even though they didn’t fulfill the obligation
What was the held in Planche V Colburn?
He was able to recover a small fee for the work completed as the publisher prevented full performance.
What is acceptance of part performance?
- Has to be consent, consent free from pressure
-Both parties agree that they dont have to complete all of the contract
-Must be agreed that default party must be paid for work done - No consent-= innocent party take advantage of work done
What was the held in Sumpter V Hedges?
Held: Customer had no choice but to complete the work, didnt consent to builders part-performance. Builder wasn’t entitled to any payment
What is Divisible contracts?
-Contract has separate parts
- contract must be clearly divided
Non completion of one part= no breach
What was the held in Richie V Atkinson?
Ship owner was entitled to be paid for the cargo he carried however he did have to pay damages for breach of contract as he didnt carry the entire cargo.
What is substantial performance?
- Party has done what is substantially required under contract, court believes they’ve done enough
-payment must be completed for the amount of work done - wont apply for single transactions
-amount paid decided on a case by case basis
What was the held in Darkin & co V Lee?
The contract had been substantially performed, builders were entitled to the money
What was the held in Hoenig v Isaacs?
The decorator was entitled to be paid for what he had done on a quantum merit basis
Bolton V Mahadeva held?
If the work isn’t substantially performed, party who carried out the work is entitled to nothing
When is time seen as a condition?
- The parties state in the contract ‘time is of the essence’
- Time of completion is critical for the contract
- One party hadn’t performed on time so the other party has insisted on another date of completion
Union Eagle V Golden Achievement held?
The completion time was a condition of the contract so the seller successfully repudiated the contract
What are the remedies?
- Quantum merit: paid for work completed
- Repudiation: the contract comes to an end
- Specific Performance- Court specifies what needs to happen in the contract
- Damages: Compensation awarded to C
