Discharge by Performance Flashcards
Discharge Definiton?
Discharge means the termination of a contract. The usual way to discharge a contract is through performance (both parties have done the agreed actions). However, there is also discharge by frustration and discharge by breach.
Discharge by Performance Rules?
Discharge by performance is that performance must be complete and exact.
Cutter v Powell - Where the contract is not exactly complete then there is no completion.
Re Moore and Landauer - The performance must be exact.
Restrictions: 1) Divisible Contracts/Severable contracts?
Set out by Ritchie v Atkinson - Divisible Contracts/Severable contracts.
Where a contract is in separate parts then non completion of one part is not a breach of the whole contract. - Ritchie v Atkinson - So the C gets paid for the parts he has done.
Bolton v Mahadeva - So long as the contrat is still worthwhile.
Restrictions: 2) Substantial Performance?
Dakin v Lee - Substantial performance.
If the party has done substantially what is required under the contract then the idea of substantial performance will apply. - Dakin v Lee - So the claimant gets paid for the majority of the contract.
Bolton v Mahadeva - So long as the contract is still worthwhile.
Restrictions: 3) Prevention of full performance?
Planche v Colburn - Prevention of full performance.
If one party prevents the other from carrying out the contract, then the innocent party can claim to be paid - Planche v Colburn.
Restrictions: 4) Acceptance of Part Performance?
Acceptance of Part Performance - Sumpter v Hedges.
If one party accepts past performance then the contract must be paid, so long as the performance wasn’t accepted under economic duress - Sumpter v Hedges.
Discharge by Performance - How time effects the performance of the contract?
In many contracts a time is inserted for completion. The time is regarded as a condition if:
The Parties expressly stated that the time is an important factor. - Union Eagle.
In the circumstances time was of the essence - Charles Rickards v Oppenheim.
One party has failed to perform on time so a new date for completion has to be given - Charles Rickards v Oppenheim.
Time and Warrenty?
If none of the above apply then time for a performance will be treated as a warrenty.
No Set time?
Where no time is set for performance it must be completed within a reasonable time.
