discharge by performance

Question 1

discharge

Answer 1

• obligations under the contract come to an end
• contract has been satisfactorily completed

Question 2

three ways a contract can be discharged

Answer 2

• performance
• frustration
• breach

Question 3

discharge by performance

Answer 3

• the rule in cutter v powell states that the contract won’t be discharged until all of the obligations have been performed

Question 4

exceptions to the rule

Answer 4

• divisible contract (richie v atkinson)
• acceptance of part performance (sumpter hedges)
• substantial performance (hoeing v isaacs)
• prevention of performance (planche v colburn)

Question 5

divisible contract (exception 1/4)

Answer 5

• when the courts feel that the ‘contract’ was not one single contract but was a series of contracts
• richie v atkinson

Question 6

acceptance of part performance (exception 2/4)

Answer 6

• when one party accepts what has been done so far and will have to pay the other party for what has been done
• only an exception if the party who receives partial performance has a choice
• sumpter v hedges

Question 7

substantial performance (exception 3/4)

Answer 7

• the courts find that the party has done what was required under the contract even if all obligations weren’t performed
• hoeing v isaacs

Question 8

prevention of performance (exception 4/4)

Answer 8

• party trying to perform the contract may have a claim for damages if the other party is preventing performance
• planche v colburn

Question 9

time of performance

Answer 9

• time is of the essence if it is a condition
• is of the essence: innocent party can treat the contract as repudiated and claim damages

Question 10

time can be of the essence in three circumstances

Answer 10

• contract expressly states it is
• where one party has already failed to perform a contractual obligation
• the surrounding circumstances show that time is critical (eg perishable goods)